The best and the largest cryptocurrency exchange by market volume, Binance is facing an investigation by the U.S Internal Revenue Service and the Department of Justice.
The IRS (Internal Service Revenue) of the U.S is responsible for collecting taxes administering the Internal Revenue Code. What the IRS does are providing tax assistance to taxpayers; pursuing and resolving instances of erroneous or fraudulent tax filings; and overseeing various benefits programs.
According to the report by Bloomberg, Department officials have gathered information from individuals with insight into Binance’s business. The report further noted that the federal agencies haven’t accused Binance of wrongdoing.
However, after Bloomberg’s report released, Binance CEO, Changpeng Zhao posted on Twitter, saying “So much FUD today”.
The report includes some emailed statements by Binance spokeswoman Jessica Jung saying,
“We take our legal obligations very seriously and engage with regulators and law enforcement in a collaborative fashion,”
“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.”