Binance, the world’s largest cryptocurrency exchange by trading volume, is under investigation by the Justice Department and the Internal Revenue Service, according to Bloomberg.
The exact subject of the investigation has not been confirmed, but it reportedly involves officials who typically deal with money laundering and tax offenses.
According to Bloomberg sources, the IRS investigation is targeting not only Binance users but also potential employees of the company.
Regulators have been harassing Binance for years – the Commodity Futures Trading Commission is currently investigating whether it knowingly allowed US customers to trade on its non-US platform. The company claims that it actively prevents US residents from accessing investment products and that it complies with all legal and regulatory requirements in the jurisdictions in which it operates.
“We take our legal obligations very seriously and cooperate with regulators and law enforcement,” the company said in a statement posted on its Twitter account. “We have worked hard to establish a robust regulatory compliance program that includes anti-money laundering principles and tools used by financial institutions to detect and eliminate suspicious activity.” In October last year, Forbes published an article in which it claimed there were plans for Binance to evade US regulators. Binance responded by suing the publisher for libel, but the company has since dropped the lawsuit.