Binance is reportedly under investigation from IRS and Justice Department

Major cryptocurrency exchange Binance is reportedly under investigation by both the United States Department of Justice and Internal Revenue Service in an apparent effort to stymie illegal trading activity from users in the United States.

According to a Bloomberg report, the two government agencies are investigating Binance Holdings Ltd, with officials seeking information from individuals with knowledge of the crypto exchange’s business. The report said the information came from unnamed sources who requested anonymity due to the confidential nature of the probe.

“We take our legal obligations very seriously and engage with regulators and law enforcement in a collaborative fashion,” said Binance spokesperson Jessica Jung. “We have worked hard to build a robust compliance program that incorporates anti-money laundering principles and tools used by financial institutions to detect and address suspicious activity.”

In March, the news outlet reported that the Commodity Futures Trading Commission was also investigating Binance. Regulators were reportedly determining whether U.S.-based Binance users purchased and sold cryptocurrency derivatives on the platform.

The price of major cryptocurrencies dropped as the report broke. The price of Bitcoin (BTC) fell 3.8% from $50,270 to reach $48,336 at the time of publication. Ether (ETH) experienced a more significant price drop, falling more than 5% from $3,854 to $3,661.

This story is developing and will continue to be updated.