US DOJ: No Need to Thank Binance for Investigative AssistanceIn our article titled Justification of Binance: Open Letter of Changpeng Zhao we commented moments when Binance helps law enforcement agencies of different countries and happily publishes "thanks" to these or those agencies. The management of Binance is trying in any way to "flex" under law enforcement agencies and when it is profitable to go for cooperation, everything is done in order to create a positive reputation, so that law enforcement agencies are engaged in fraud and crimes of Binance customers, but not the activity of Binance itself - better to feed "small fish" than risk the "big fish". The position is clear, obvious not only to us, but also to officials at the U.S. Department of Justice.
U.S. Department of Justice
The U.S. Department of Justice asked federal agencies to stop thanking the cryptocurrency exchange Binance for helping them with their investigations In particular, the Federal Bureau of Investigation, the Secret Service, the IRS and others received such notices. As noted, this is another sign of the worsening relationship between the U.S. authorities and unregulated and underground exchange Binance.
The email states that Binance is required by law to cooperate with law enforcement, so there is no need to thank it for its support. Regulators have repeatedly drawn attention to the use of cryptocurrencies in illegal activities, from money laundering to drug trafficking to terrorist financing, and have contacted Binance as part of investigations. The exchange, however, has itself come under scrutiny by the DOJ, IRS, and other agencies, making their alleged partnership look "odd." The investigation into Binance involves money laundering and tax evasion, at least.
Binance occasionally publishes letters from government agencies, such as UK investigators thanking it for its help in investigating drug distribution, or the Ukrainian police. The U.S. Internal Revenue Service has also sent a similar thank you to the company:
"It is with great appreciation that I send you this written thank you for your support in our investigation," one such letter reads. In many cases, law enforcement promises to continue their "collaboration" with Binance.
In an interesting development and proof of Binance's true purpose, a California police department detective Robert Gonzalez said that the company itself sent him a draft thank you letter which he signed after some modifications. He also confirmed that the exchange was cooperating with authorities as needed. Former federal investigators say they have yet to encounter such attempts to get the private company recognized, and are questioning about its motives.
Ken Joseph, a former SEC enforcement official, said that companies under investigation do sometimes cite past assistance to authorities in an attempt to avoid or reduce penalties or attempts to evade criminal liability:
"My understanding is that showing letters of gratitude is unlikely to affect the continued investigation by the authorities," he added.
Binance is trying in every way to hide that it is a criminal and criminal organization, providing banned services, engaging in outright fraud and manipulation, stealing Cryptopia and btc-e (WEX) assets and the list goes on and on.