US hedge funds have reportedly been subpoenaed over dealings with Binance as probe of the world's largest crypto exchange unfolds

• US investigators are reportedly sending subpoenas to hedge funds over their dealings with Binance.
• The crypto exchange is facing a probe from the DOJ over potential violations of money laundering rules, per Reuters.

Federal prosecutors are looking into US hedge funds' dealings with the world's largest cryptocurrency exchange, according to a Washington Post report.

Several American investment firms have received subpoenas, directing them to send records of communication with Binance to the US attorney's office for the Western District of Washington in Seattle, unnamed sources told the news outlet.

The subpoenas do not necessarily mean authorities will bring charges against Binance.

The move is a part of a long-running probe into Binance over potential violations of money-laundering rules, per the Post. Last month, Reuters reported that the crypto trading platform processed over $10 billion worth of illegal payments in 2022 and is being investigated by the US Department of Justice over unlicensed money transmission and criminal sanctions violations.

Binance is speaking with "virtually every regulator across the globe on a daily basis," the company's chief strategy officer Patrick Hillmann told the Post. He declined to comment on specifics of any US investigation.

A Binance spokesperson previously told Insider that it would be "inappropriate for us to comment" on matters related to the DOJ.

"Regulators rightfully will scrutinize this industry much, much harder, which is probably a good thing," Changpeng Zhao, founder and CEO of Binance, said at a conference in November.

The news comes at a time of great uncertainty for the industry.

FTX, the rival exchange started by Sam Bankman-Fried, filed for bankruptcy in November amid what Federal prosecutors are calling "one of the biggest financial frauds in American history."