Top Exchange Is Under Investigation; Possing Next Challenge for Crypto Market?

• The US Justice Department’s national security division investigates Binance.
• 190 Binance crypto accounts have been seized by Israeli authorities.

The U.S. Justice Department’s national security division is investigating Binance Holdings to determine whether the cryptocurrency exchange was illegally utilized to allow Russians to move funds through it in violation of US sanctions related to Russia’s invasion of Ukraine, as per the Bloomberg report.

This is not the first time the Justice Department has sued the largest exchange. In 2021, Binance faced a joint investigation by the Internal Revenue Service and the Justice Department. 

Since the beginning of 2022, the crypto exchange has endured several challenges. The U.S. Securities and Exchange Commission (SEC) has been investigating Binance’s connections to two businesses that “Changpeng Zhao,” the company’s founder, owns. In March 2023, the Commodity Futures Trading Commission (CFTC) sued CZ’s exchange for federal rule violations.

Further, According to  Israel’s National Bureau for Counter Terror Financing (NBCTF), over 190 Binance cryptocurrency accounts linked to terrorist groups have been seized by Israeli authorities since 2021. 

However, the world’s biggest cryptocurrency exchange, Binance, is taking more steps toward expanding its services to a wider population.