Binance.US faucets ‘most feared man on Wall Road’ for brand new investigations unit
United States crypto trade Binance.US has created a brand new “investigations unit” and tapped a former FBI particular agent as its new head, with the goal of searching for out and stopping criminal activity on its platform.
The “investigations unit” is a model new unit inside the U.S. crypto trade, the agency’s head of authorized, Krishna Juvvadi, confirmed to Cointelegraph and sees former FBI agent BJ Kang turn out to be the corporate’s first “head of investigations.”
The position will see him partnering with regulation enforcement, regulators and even different exchanges to hunt out and cease criminal activity on its platform, Kang may also construct an “investigations infrastructure” for Binance.US.
In an Oct. 20 assertion, Binance.US says it has strengthened its authorized, compliance and danger operations over the previous yr by growing its division headcount by 145% and dedicating over one-fifth of the corporate’s complete workforce to these capabilities.
Kang is thought for his high-profile investigations into securities fraud and insider trading in the traditional finance space during his nearly 20-year stint at the FBI.
The former FBI agent was once dubbed as “probably the most feared man on Wall Road” by Reuters after gaining notoriety for being photographed arresting Bernie Madoff — who was discovered responsible of working the most important Ponzi scheme thus far — and Raj Rajaratnam, a former hedge fund supervisor discovered responsible of insider buying and selling.
He beforehand served on the FBI Washington Area Workplace’s cybercrime squad investigating cyber-enabled money laundering, extortion and hackers concentrating on crypto and monetary companies amongst different crimes.
The appointment of Kang comes because the exchange is facing probes from the Securities and Exchange Commission (SEC), which reportedly requested information regarding two companies supposedly acting as market makers for the platform and is investigating how Binance.US may have disclosed its potential links to the companies to users.
Binance, which operates separately from its US arm, has also had to fight back against two Reuters exposes over the past year which accused the platform of processing at least $2.35 billion worth of transactions from hacks, investment frauds and narcotics sales between 2017 and 2021.
Related: Government crackdowns are coming unless crypto starts self-policing
The most recent allegations on Oct. 17 claimed the platform “swerved scrutiny” from regulators within the U.S. and United Kingdom, mentioning two separate proposals submitted by both staff or associates.
Within the case of the U.Ok allegation, it was proposed that Binance backdate service agreements to achieve a monetary registration exemption, and within the U.S. a proposal to direct authorities’ consideration to a U.S. entity as an alternative of to Binance itself.