Crypto exchange Binance has once again come under the scrutiny of the US Department of Justice, this time for potentially flouting the regulator’s sanctions on Russia during its Ukraine invasion, according to a report by Bloomberg.
The US DOJ’s national security division is investigating whether Binance allegedly allowed cryptocurrency transactions in Russia when it imposed a ban on the country, five people close to the matter stated.
US DOJ Investigates Binance’s Compliance
According to people close to the matter, the investigation is different from previous probes by the US regulator on the largest exchange in the world by trading volume. One of the people close to the matter stated that the scrutiny is based on suspicions that Binance allowed Russians to bypass US sanctions by moving crypto assets through the exchange.
The United States joined the European Union and a host of other nations to ban all crypto asset wallets and accounts tied to Russia in the wake of its Ukraine invasion. In its effort to weaken Russia economically and politically, the EU saw crypto assets as a way the transcontinental country could move money and fund its attack on Ukraine.
A person close to the issue noted that the DOJ does not plan on any non-prosecution settlement with Binance. Furthermore, the person stated that the exchange might push for a negotiation with the government depending on the facts obtained from the investigation.
Binance Reacts
Just a few hours after a document by Israel’s counter-terrorism authorities revealed it withheld Binance accounts linked to terrorism, the DOJ has dropped yet another investigation into the exchange.
The Justice Department declined to comment on the ongoing investigation. However, Binance reacted to the probe, stating that the exchange fully complies with all US and international financial sanctions.
“In 2021, Binance launched an initiative to completely overhaul its corporate governance structure, including bringing in a world-class bench of seasoned executives to fundamentally change how Binance operates globally,” Binance stated.
The probe adds to Binance’s long list of regulatory and financial charges by US regulators. If indicted, the crypto market would feel the effect as the exchange dominates proceedings in the sector.
