London Daily

Focus on the big picture.
Monday, Aug 25, 2025

U.S. Officials Investigating Crypto Exchange Binance Amid Market's Massive Boom

U.S. Officials Investigating Crypto Exchange Binance Amid Market's Massive Boom

The Department of Justice and Internal Revenue Service have reportedly opened an investigation into the biggest cryptocurrency exchange Binance, heightening tensions in the largely unregulated industry amid unprecedented market volatility and reports that hackers demanded a $5 million cryptocurrency ransom from the fuel company that halted operations this week.
U.S. officials from the DOJ and IRS are seeking information about Cayman Islands-based Binance from people with intimate knowledge of the company's operations, Bloomberg reported Thursday, citing anonymous sources familiar with the matter.

It's unclear what exactly officials are probing, but the report states that prosecutors within the DOJ's bank integrity unit, charged with complex, international cases involving money laundering, are at least partly leading the inquiry.

Bloomberg notes that more illicit funds flowed through Binance last year than any other crypto exchange, according to blockchain data company Chainalysis, though it's worth noting Binance is also the world's largest crypto exchange.

In an email, a Binance spokesperson said the company doesn’t comment on specific inquiries; Forbes is awaiting responses from the IRS and DOJ.

“We take our legal obligations very seriously and engage with regulators and law enforcement in a collaborative fashion,” a Binance spokeswoman said in a statement. “We have worked hard to build a robust compliance program that incorporates anti-money laundering principles and tools used by financial institutions to detect and address suspicious activity.”


KEY BACKGROUND

Founded in 2017 by now-billionaire Changpeng Zhao (who goes by CZ), Binance has been at the center of the past year's crypto market explosion, consistently ranking as the world's top crypto exchange by volume and processing some $80 billion in transactions over the past 24 hours alone.

Though it's exploded in value, the cryptocurrency market is still largely unregulated in the U.S., but its anonymous transactions have drawn increased scrutiny from U.S. officials.

In January, Treasury Secretary Janet Yellen, who at the time was still awaiting confirmation, called cryptocurrencies “a particular concern," and urged lawmakers to take action to “curtail their use,” particularly to ensure they’re not used for illicit financing.


SURPRISING FACT

Colonial Pipeline reportedly paid hackers $5 million in an unidentified cryptocurrency on Friday following a cyberattack that forced the pipeline offline and created a severe gas shortage.

TANGENT

According to a 2018 document obtained and published by Forbes in October, Binance conceived of an elaborate corporate structure designed to intentionally deceive regulators and surreptitiously profit from U.S. crypto investors. After the article was published, CZ responded in tweets claiming the story was incorrect and that the document was not created by a current or former employee.
Newsletter

Related Articles

0:00
0:00
Close
Vietnam Evacuates Hundreds of Thousands as Typhoon Kajiki Strikes; China’s Sanya Shuts Down
UK Government Delays Decision on China’s Proposed London Embassy Amid Concerns Over Redacted Plans
A 150-Year Tradition to Be Abolished? Uproar Over the Popular Central Park Attraction
A new faith called Robotheism claims artificial intelligence isn’t just smart but actually God itself
Deputy Prime Minister Angela Rayner Purchases Third Property Amid Housing Tax Reforms Debate
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Italian Facebook Group Sharing Intimate Images Without Consent Shut Down Amid Police Investigation
Dutch Foreign Minister Resigns Amid Deadlock Over Israel Sanctions
Trump and Allies Send Messages of Support to Ukraine on Independence Day Amid Ongoing Conflict
China Reels as Telegram Chat Group Shares Hidden-Camera Footage of Women and Children
Sam Nicoresti becomes first transgender comedian to win Edinburgh Comedy Award
Builders uncover historic human remains in Lancashire house renovation
Australia Wants to Tax Your Empty Bedrooms
MotoGP Cameraman Narrowly Avoids Pedro Acosta Crash at Hungarian Grand Prix
FBI Investigates John Bolton Over Classified Documents in High-Profile Raids
Report reveals OpenAI pitched national ChatGPT Plus subscription to UK ministers
Labour set to freeze income tax thresholds in long-term 'stealth' tax raid
Coca‑Cola explores sale of Costa coffee chain
Trial hears dog walker was chased and fatally stabbed by trio
Restaurateur resigns from government hospitality council over tax criticism
Spanish City funfair shut after serious ride injury
Suspected arson at Ilford restaurant leaves three in critical condition
Tottenham beat Manchester City to go top of Premier League
Bank holiday heatwave to hit 30°C before remnants of Hurricane Erin arrive
UK to deploy immigration advisers to West Africa to block fake visas
Nurse who raped woman continued working for a year despite police alert
Drought forces closures of England’s canal routes, canceling boat holidays
Sweet tooth scents: food-inspired perfumes surge as weight-loss drugs suppress appetites
Experts warn Britain dangerously reliant on imported food
Family of Notting Hill Carnival murder victim call event unmanageable
Bunkers, Billions and Apocalypse: The Secret Compounds of Zuckerberg and the Tech Giants
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
New York Appeals Court Voids Nearly $500 Million Civil Fraud Penalty Against Trump While Upholding Fraud Liability
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
Child-free hotels spark controversy
North Korea is where this 95-year-old wants to die. South Korea won’t let him go. Is this our ally or a human rights enemy?
Hong Kong Launches Regulatory Regime and Trials for HKD-Backed Stablecoins
China rehearses September 3 Victory Day parade as imagery points to ‘loyal wingman’ FH-97 family presence
Trump Called Viktor Orbán: "Why Are You Using the Veto"
Horror in the Skies: Plane Engine Exploded, Passengers Sent Farewell Messages
MSNBC Rebrands as MS NOW Amid Comcast’s Cable Spin-Off
AI in Policing: Draft One Helps Speed Up Reports but Raises Legal and Ethical Concerns
Shame in Norway: Crown Princess’s Son Accused of Four Rapes
Apple Begins Simultaneous iPhone 17 Production in India and China
A Robot to Give Birth: The Chinese Announcement That Shakes the World
×