IRS beams investigative light on Binance
News

IRS beams investigative light on Binance

Saudu Clement
Saudu Clement

According to a Bloomberg report, Binance Holdings is under investigation by the US Justice Department and Internal Revenue Service over money laundering and tax evasion concerns.

The news broke yesterday, sending the entire cryptocurrency market into a downward spiral. Bloomberg’s report came shortly after the electric-car maker Tesla announced that it was no longer accepting Bitcoin payments for its cars, putting more strain on the already battered price of Bitcoin.

But despite the two days of negative news, it appears the market is recovering. As of press time, Bitcoin was closing in on $50,000.

Binance has denied any wrongdoing. According to the report, “not all inquiries lead to allegations of wrongdoing.” So, Binance may be let off the hook.

In its defense, Binance also stressed the success of its anti-money laundering program, following the addition of former US politicians and regulators in a bid to strengthen its regulatory compliance. In March, the crypto exchange welcomed former Senator Max Baucus of Montana and also brought onboard Comptroller of the Currency Brian Brooks to spearhead operations at its US exchange.

Binance has had several run-ins with regulators in recent times. A few weeks ago, German regulators claimed that they had “reasonable grounds” to believe that Binance violated the country’s securities laws in its recent stock tokens offering.