US authorities are investigating Binance for insider trading and market manipulation, according to sources reported by Bloomberg.

The investigation involves the Commodity Futures Trading Commission (CFTC), which is reportedly reaching out to witnesses.

The US Internal Revenue Service and Justice Department is also investigating possible money laundering on Binance’s platform according to the sources.

The CFTC and the Justice Department have reportedly been investigating the crypto exchange for months, however the firm hasn't been accused of wrongdoing and there is no guarantee of action.

A Binance spokesperson said to Bloomberg that the company has a "zero-tolerance" approach to insider trades, which includes ethical codes and security guidelines.

The crypto exchange is currently going through significant changes to management as it steps up to international regulatory scrutiny. Binance US appointed former Ant Group and Uber executive Brian Shroder to the role of president earlier this month after his predecessor Brian Brooks left, citing “differences over strategic direction”.

Binance has been supporting its US anti-money laundering (AML) scrutiny with senior hires. In August, the firm hired former US government criminal investigator Greg Monahan to lead its AML operations.

The Financial Conduct Authority (FCA) said last month that it is “not capable” of supervising Binance, claiming its “complex and high-risk financial products” - which allow consumers to place leveraged bets on cryptocurrencies - were “a significant risk to consumers”.

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