At the time of writing, DOJ hasn't made any accusations against the company or its executives.
The US Department of Justice (DOJ), a federal executive department of the United States government tasked with the enforcement of federal law and administration of justice in the US, is reportedly investigating Binance for permitting Russians to use the cryptocurrency exchange while breaching US sanctions.
According to a Bloomberg report on May 5th, citing five anonymous sources, the DOJ's national security division is allegedly conducting the investigation alongside a criminal division probe.
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It is worth noting that Binance is the subject of multiple US investigations, including an inquiry into Anti-Money Laundering (AML) violations. However, no accusations have been made against the company or its executives regarding the current investigation.
Following the imposition of sanctions on Russia in April 2022, Binance limited its services in the country. Despite that, the crypto exchange continued to operate in Russia, only blocking areas of Ukraine no longer under government control and providing services to non-sanctioned individuals.
In March, the US Commodity and Futures Trading Commission filed a lawsuit against Binance, accusing the company of Know Your Customer (KYC) and AML violations.
When asked about the matter, a Binance spokesperson highlighted that the company has been complying with US and international sanctions, and its KYC protocols align with traditional banking practices. Every customer undergoes identity and residency checks, the company added, noting:
Our policy imposes a zero-tolerance approach to double registrations, anonymous identities, and obscure sources of money.
Bloomberg also reported that Binance has been in talks with the DOJ regarding complaints that it violated previous sanctions against Iran. The authorities in Brazil are also allegedly investigating the crypto exchange.
Binance is not the only crypto exchange under scrutiny for sanctions violations; Poloniex reached a $7.6 million settlement with the US Treasury Department's Office of Foreign Asset Control for violating sanctions against Crimea, Cuba, Iran, Sudan, and Syria, as announced on May 1st.
