Key takeaways:
- The cryptocurrency exchange is under pressure from three legislators over claims that it tried to restrict compliance.
- Senators raised a lengthy list of concerns about the companies’ alleged practices.
Three senators from the United States, headed by Elizabeth Warren, has expressed concern over several aspects of Binance’s operations and have asked the business for information, including a copy of their balance sheets. In a letter to the CEOs of Binance and Binance.US, three US senators raised a lengthy list of concerns about the companies’ alleged practices.
Conservative Roger Marshall and fellow Democrat Chris Van Hollen signed as cosigners for crypto-skeptic Warren. According to them, there is proof that the businesses tried to get around American regulators, avoided paying their fair share of fines, helped at least $10 billion get laundered, and lacked transparency.
They claim in their statement that Binance US has lacked transparency, helped money laundering, and helped people get around sanctions. “What little information about Binance’s finances is available to the public suggests that the exchange is a hotbed of illegal financial activity,” senators stated, concluding:
“Your companies’ apparent attempts at evading the enforcement of anti-money laundering laws, securities laws, information reporting requirements, and other financial regulations cast serious doubt on the stability and legitimacy of Binance and its related entities and on your commitment to your customers.”
Senators asked for documents and additional details. “All Binance and Binance subsidiary balance sheets from 2017 to the present” is at the head of the list. They also request explanations of different news reports, copies of anti-money laundering and related policies, proof of the connection between Binance and Binance US, and other information. The locations had two weeks to reply.
In the message to Changpeng Zhao, CEO of Binance, and Brian Shroder, CEO of Binance US, the senators also questioned the company’s legitimacy and the security of customers’ assets.
Binance has been the subject of intense press scrutiny and a certain amount of unfavorable rumor, as the letter made plain in its 59 footnotes. CZ, a frequent tweeter, has addressed some stories directly. In February, it was revealed that Binance was getting ready to resolve unresolved legal and regulatory matters in the US and might face fines.
In a statement, Binance admitted that there had been a lot of misinformation circulating about the company, but noted that “we appreciate the senators’ request” and would give them details that would assist them in understanding it.
Representative Roger Marshall had previously stated on February 18 that Binance US could be the subject of a congressional investigation into Merit Peak and other matters.
