Three US senators have asked cryptocurrency exchanges Binance and Binance US for documents and responses related to “potentially illegal business practices.” The lawmakers told Binance CEO Changpeng Zhao (CZ): “Your actions have called into question the legitimacy of your business and the safety of your clients’ assets.”
US lawmakers investigate Binance
US Senators Elizabeth Warren (D-MA), Chris Van Hollen (D-MD) and Roger Marshall (R-KS) sent a letter to Binance and Binance US on Wednesday, calling for cryptocurrency exchanges to “provide transparency about potentially illegal transactions. business practices.”
The letter, addressed to Binance CEO Changpeng Zhao (CZ) and BAM Trading Services CEO Brian Shroder, requests documents and responses regarding the “finances, risk management, and regulatory compliance of each crypto exchange as it faces investigations into possible crimes,” the senators detailed. . Binance and its US subsidiary, Binance US, are two separate entities. BAM Trading Services is doing business as Binance US.
Citing various media reports claiming that Binance is facing multiple investigations by law enforcement and regulators following the collapse of crypto exchange FTX, the senators wrote:
Binance and its related entities willfully evaded regulators, transferred assets to criminals and sanctions evaders, and withheld basic financial information from their clients and the public.
“His actions have called into question the legitimacy of his business and the security of his clients’ assets and have raised concerns about the potential impact of these activities on the stability of the crypto market and the financial system in general,” the senators emphasized.
The letter also notes that Binance has hired French auditing firm Mazars to perform a Proof of Reserves (POR) audit on its bitcoin holdings. However, the audit firm subsequently “deleted the webpage containing the report” and stopped its activity related to proof-of-reserves audits for crypto companies, the letter added.
The senators concluded their letter by requesting “documents and answers” corresponding to a list of questions no later than March 16. The documents requested by lawmakers include “full copies of all balance sheets of Binance and Binance subsidiaries from 2017 to the present” and its internal anti-money laundering (AML), anti-financing of terrorism (CFT) and anti-money laundering (CFT) policies and procedures. know your customer (KYC).
A copy of the senators’ letter was sent to Gary Gensler, Chairman of the US Securities and Exchange Commission (SEC); Rostin Behnam, Chairman of the Commodity Futures Trading Commission (CFTC); and Merrick B. Garland, US Attorney General at the Department of Justice (DOJ).
What do you think about US senators investigating Binance and Binance US for “potentially illegal business practices”? Let us know in the comments section.
image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or a solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.