- Exchange was "unaware" of the laws aimed at preventing corruption, money laundering
- Authorities have been investigating Binance for years
The world’s biggest crypto exchange is bracing for hefty penalties to settle previous regulatory violations it has committed according toThe Wall Street Journal.
Patrick Hillmann, Chief Strategy Officer of the exchange, told the Journalon Wednesday that their rapid, exponential growth prevented them from grasping the complexity of the rules and regulations applicable to their activity.
Binance is cooperating with regulators
Initially, the exchange was unaware of the numerous laws aimed at preventing corruption, money laundering, and evasion of sanctions. According to the CSO, the exchange expects to face monetary penalties and is cooperating with regulators to see what remedies need to be undertaken to settle the violations.
DOJ and Attorney’s Office hone in on the platform
After FTX collapsed last year, regulatory scrutiny of Binance intensified. Reportedly, the US Department of Justice (DOJ) has sent subpoenas to at least two trading platforms in the past few months, asking for records of previous transactions with Binance’s US arm.
The US Attorney’s Office for Washington State’s Western District has been investigating the exchange for at least five years.
Binance faced charges last year
In December last year, world media reported that US federal authorities and Binance were discussing apotential settlement. The feds were evaluating whether the evidence they had collected was enough to charge Binance and a number of individuals, including its CEO, who saw his net worth plummet last year.
When asked what outcome he expected, Hillman said the investigation would likely result in a fine. He did not explain which investigation he meant, saying it was “for regulators to decide.”
He also declined to report a timeline for the settlement or estimate the size of the anticipated penalty. He did say he was positive about the talks with regulators and where they were headed, adding:
It will be a good moment for our company because it allows us to put it behind us.
