Federal Prosecutors are reportedly investigating US-based hedge funds that allegedly have dealings with cryptocurrency exchange Binance. Citing two sources familiar with the matter, the US Attorney’s Office for the Western District of Washington has reportedly issued subpoenas.
Sources Say US Justice Department is Investigating US Hedge Funds Involved in Cryptocurrency Probe
In a report by The Washington Post contributor Douglas MacMillan, it is alleged that US hedge fund managers are being investigated in connection to cryptocurrencies. The subpoenas are said to have originated from the US Attorney’s Office for the Western District of Washington. MacMillan’s sources allegedly viewed one of the subpoenas and spoke on condition of anonymity.
The reports of the subpoenas are coming in the wake of a series of news reports suggesting possible investigations into cryptocurrency companies and firms associated with them. Late December, The Wall Street Journal reported that the US Securities and Exchange Commission (SEC) is reportedly probing firms that audit cryptocurrency exchange reserves. Though many of the allegations have yet to be verified by US law enforcement officers, the crypto space has been increasingly on edge.
Binance, the world’s largest exchange by global trade volume, has faced a lot of scrutiny in the two months since FTX crashed. Binance’s Chief strategy officer Patrick Hillmann said that the exchange is talking to “virtually every regulator in the world on a daily basis.” However, a Justice Department spokesperson declined to comment about the alleged investigation.
What are your thoughts about the subpoenas reportedly issued to US hedge fund managers in connection to their dealings with Binance? Please share your thoughts below.
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