Cryptocurrency exchange Binance will face more scrutiny from the United States as officials extend investigations to include possible insider trading and market manipulation.
Although Binance is not accused of any misconduct, investigators from the Commodity Futures Trading Commission (CFTC) have been gathering witnesses on the company’s internal controls, according to Bloomberg sources.
Bloomberg reported that CFTC have asked witnesses about the location of Binance’s data servers and whether it sold derivatives tied to cryptocurrency without registrations.
A spokesperson for Binance commented that the company has “zero-tolerance” for insider trading and has strict guidelines in place to prevent misconduct.
The probes on Binance came amid a wider U.S. crackdown on digital currency as officials fear that its lack of regulation may harm customers.
The Internal Revenue Service and Justice Department continue to investigate allegations of the cryptocurrency exchange being used for money laundering.
Binance, which is not based in any country, had already received multiple warnings from different countries for trading cryptocurrency worth tens of billions of dollars almost unregulated.
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