Binance is reportedly under investigation from IRS and Justice Department

The price of Bitcoin and Ether both fell between 3-5% as the report spread across social media.

Major cryptocurrency exchange Binance is reportedly under investigation by both the U.S. Department of Justice and Internal Revenue Service in an apparent effort to stymie illegal trading activity from users in the United States.

According to a Bloomberg report, the two government agencies are investigating Binance Holdings Ltd, with officials seeking information from individuals with knowledge of the crypto exchange’s business. The report said the information came from unnamed sources who requested anonymity to the confidential nature of the probe.

In March, the news outlet reported that the Commodity Futures Trading Commission, or CFTC, was also investigating Binance. Regulators were reportedly determining whether U.S.-based Binance users purchased and sold cryptocurrency derivatives on the platform.

The price of major cryptocurrencies dropped as the report broke. The price of Bitcoin (BTC) fell 3.8% from $50,270 to reach $48,336 at the time of publication. Ether (ETH) experienced a more significant price drop, falling more than 5% from $3,854 to $3,661.

This story is developing and will continue to be updated.