Cryptocurrency exchange Binance hired an FBI agent to investigate cryptocurrency crimes

The American division of the largest bitcoin exchange Binance has hired former FBI agent Jay Kahn to become the head of the investigation department. The specialist will be responsible for cooperation with law enforcement agencies, regulators, and trading platforms. Kahn will detect and prevent illegal activities on the cryptocurrency platform. He is also supposed to create an «infrastructure for investigating» questionable cases.

Jay Kahn is known for high-profile cases involving financial crimes. In 2006, he focused on insider trading in hedge funds and also dealt with extortion cases, hacker attacks on cryptocurrency and traditional financial corporations. Reuters once called him the «most feared man on Wall Street».

In late August, the Committee on Oversight of Economic and Consumer Policy of the US House of Representatives became interested in Binance’s activities. The US regulatory body sent a letter to the exchange demanding to know how the company is going to fight cryptocurrency fraud and market manipulation. The request was also sent to cryptocurrency platforms Coinbase, FTX, Kraken, and KuCoin.

«Given the popularity of cryptocurrencies as both a form of payment and investment, I am concerned about the rapid growth of fraud and consumer abuse,» said Raja Krishnamoorthy, a representative of the Committee, Illinois Congressman. The official believes that by the end of 2022, the cryptocurrency industry will lose more than a billion dollars due to fraudulent schemes.