Binance, the world’s largest cryptocurrency exchange, investigated for money laundering

Binance investigated for money laundering

The main cryptocurrencies are suffering significant drops after hearing the news. In addition, the SEC issued a statement against digital assets. It occurs after the blow Tesla gave to Bitcoin.

The Bitcoin adds another blow in a matter of hours after which he received yesterday’s decision Tesla to no longer accept the cryptocurrency as payment. Today it was announced that the United States Department of Justice is investigating Binance, the largest stock cryptocurrencies in the world, for alleged money laundering and tax crimes.

The information was released exclusively by the Bloomberg agency. The digital currency created by the company itself, Binance Coin, has gone from green to red in a matter of minutes and records losses of more than 11%. Yesterday it had already lost almost 20% in less than an hour.

At 3:43 p.m. on Monday, Bitcoin is trading at less than $47,800. A fall very similar to that of Ethereum, the second crypto in volume, which fell by 11% to US $3,672.

The total value of cryptocurrencies is falling by more than 10% to $ 2.18 trillion. Although the most bearish is undoubtedly the Dogecoin, in the last seven it accumulates a decrease of more than 30%.

In recent months, the United States has repeatedly raised concerns about the possible use of cryptocurrencies to hide illegal transactions, such as robberies and drug trafficking. A concern that has worsened after the hacker attack on the main US oil pipeline. The company reportedly paid criminals nearly 5 million in untraceable cryptocurrencies.

“We take our legal obligations very seriously and engage with regulators and law enforcement collaboratively,” Binance spokeswoman Jessica Jung explained in a statement collected by Bloomberg, while adding that the company does not comment on specific issues or research. “We have worked hard to build a robust compliance program that incorporates the anti-money laundering principles and tools used by financial institutions to detect and address suspicious activity,” he added.

The SEC against cryptocurrencies

Meanwhile, the United States Securities and Exchange Commission (SEC) released a public statement warning investors about the risks involved in the bitcoin futures investment markets, which are considered “highly speculative.” For this reason, careful assessment of the risks in these types of markets is encouraged.

The release was published on May 11, 2021, and was issued by the SEC’s Investment Management Division. The message is qualified as a “staff public statement” and is presented under a disclaimer by the Commission. It represents “opinions of the staff, and is not a norm, regulation or statement of the Commission.” It should be noted that the SEC mentions, within the announcement itself, that it does not approve or disapprove of its content.

The statement, meanwhile, is set as an alert to measure the risks involved in the Bitcoin futures markets. It also warns that speculative levels can be affected by factors such as lack of regulation, potential fraud and price manipulation.

It should be noted that future contracts are a financial instrument that allows exposure to the price of an asset, in this case Bitcoin, but without the need to acquire it. These are handled as by-products. In this regard, in 2000 the Futures Modernization Law was enacted, which prohibited the regularization of futures, but which, according to some, was the cause of the 2008 crisis.