Cryptocurrency exchange platform Binance is currently being investigated by the U.S. Internal Revenue Service (IRS) as well as the Department of Justice (DOJ).

Binance is the globe’s largest crypto exchange, but closed itself off to U.S. users last year, moving them to Binance.US

The news has affected Binance Coin (BNB-USD) down by nearly 12 per cent for the session.

Bloomberg reports that officials from the DOJ and the IRS have “sought information from individuals with insight into Binance’s business,” without naming sources. The report notes that the federal agencies have not accused Binance of wrongdoing.”

This investigation is not the first time the trading platform has been scrutinized.

In March, Bloomberg reported that the trading platform was facing an inquiry from the Commodity Futures Trading Commission (CFTC) over whether the exchange allowed U.S. residents to trade on its platform.

The Financial Times reported that European regulators, including the UK’s Financial Conduct Authority (FCA), sought to examine whether Binance complied with security rules before launching trading in stock tokens.

The underlying concern is that cryptocurrencies are being used to conceal illegal transactions, including theft and drug deals, and potential tax evasion from traders. 

In response, Binance had clarified that the company follows U.S. rules and uses technology to check transactions for signs of money laundering and other illicit activity.