Binance, the largest exchange by trading volume, is facing money laundering and tax evasion investigations from the U.S. Justice Department and the Internal Revenue Service, according to Bloomberg.
The government agencies haven't accused the exchange of any wrongdoing yet.
Binance spokesperson Jessica Jung claims that the company takes its legal obligations "very seriously":
We take our legal obligations very seriously and engage with regulators and law enforcement in a collaborative fashion.
In March, Bloomberg also reported that the top exchange was being investigated by the Commodity Futures Trading Commission (CFTC). The report was dismissed as fear, uncertainty, and doubt ("FUD") by Binance CEO Changpeng Zhao.
Zhao has already taken to Twitter to comment on the most recent news.
In a follow-up tweet, he adds that the exchange is actually collaborating with the agencies to fight bad actors.
Binance Coin (BNB) has plunged over 12 percent over the last 24 hours, with Ethereum and Bitcoin also being under severe pressure.