Reported by: Douglas MacMillan and Tory Newmyer

Federal prosecutors are examining American hedge funds’ dealings with cryptocurrency exchange Binance as part of a long-running investigation into potential violations of money-laundering rules at one of the world’s leading crypto companies.

In subpoenas sent in recent months, the U.S. attorney’s office for the Western District of Washington in Seattle directed investment firms to hand over records of their communications with Binance, according to two people, each of whom reviewed one of the subpoenas and spoke on the condition of anonymity to discuss the confidential matter.

The subpoenas, which have not been previously reported, do not necessarily mean authorities are likely to bring charges, legal experts said. Prosecutors are still discussing a possible settlement with Binance and weighing whether they have enough evidence to bring indictments against the company, Reuters reported last month.

In an interview, Binance chief strategy officer Patrick Hillmann said the company is talking to “virtually every regulator across the globe on a daily basis,” but declined to comment on the status of any U.S. investigation. Joshua Stueve, a Justice Department spokesman, also declined to comment.

Read full report: https://www.washingtonpost.com/technology/2023/01/07/binance-subpoenas-crypto-trading/