The Strategist

Binance hires former FBI agent to track illegal transactions

10/21/2022 - 03:04

The Wall Street Journal reports that BJ Kang, a former FBI special agent, has been hired by Binance, the largest cryptocurrency exchange in the world, to lead the department in charge of investigations.

He will be employed by the exchange's American branch and be in charge of identifying and following any questionable transactions that go through Binance, as well as collaborating closely with American law enforcement and regulatory bodies.

One of the FBI's most famous special agents, BJ Kang was in charge of several prominent insider trading cases in the country. In particular, Kang was responsible for the 2008 and 2009 arrests of Raj Rajaratnam, the head of the hedge fund Galleon Group, and Bernie Madoff, the brains behind the biggest pyramid scam in American history.

The regulatory personnel at Binance US has increased by 145%, according to the Wall Street Journal. Now, more than 20% of the company's staff members work in the legal, compliance, and risk management fields.

This year, Binance has been the subject of two investigations by American authorities. The Securities and Exchange Commission (SEC) chose to look into connections between the Binance U.S. unit and two brokerage firms that provide services to the cryptocurrency exchange in February. The regulator also expressed interest in the exchange's own token issuance from five years ago in June. The SEC thinks Binance broke the rules and actually issued securities in violation of the law.


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