According to Bloomberg, US officials are reportedly examining Binance for alleged insider trading and price manipulation to see whether its employees benefitted by taking advantage of its clients.
“At Binance, we have a zero-tolerance policy for insider trading and a stringent ethical code relating to any form of action that could have a detrimental impact on our customers or industry,” Binance responded.
According to the outlet, the review is being conducted by Commodity Futures Trading Commission (CFTC) investigators, who have been reaching out to possible witnesses in recent weeks.
The derivatives watchdog has already begun investigating whether Binance allows US people to buy and sell futures tied to bitcoin and other cryptocurrencies, which is illegal because Binance is not registered with it.
In addition to the CFTC, the US Department of Justice (DOJ) and the Internal Revenue Service (IRS) are looking into Binance.
According to the publication, the two previously initiated criminal investigations into whether the exchange served as a conduit for money laundering and tax evasion.
The corporation has not been charged with any wrongdoing, and the inquiries may not result in any official action.
Binance has been warned by an increasing number of regulators worldwide for illegally operating in their jurisdictions, including the United Kingdom, Japan, Thailand, Malaysia, Hong Kong, Singapore, the Netherlands, Germany, Lithuania, and South Africa.