US Senators Accuse Binance Of Being A Hotspot For Legal Violation

Key Points:

• A bipartisan group of three US senators has sought details about Binance’s anti-money laundering measures.
• Since 2017, a group of US senators has asked the company’s CEO, Changpeng Zhao, for details pertaining to its balance sheets.
• The Senators have given Binance until March 16 to answer their request.

Three US senators from different political parties have written to Binance, accusing the cryptocurrency exchange of being a hotbed of illegal financial activity and requesting information on its anti-money laundering measures, according to the Wall Street Journal.

The group demanded information on the company’s balance statements, internal processes, and any correspondence regarding what was allegedly an attempt by Zhao to limit compliance, according to the letter sent to Binance CEO Changpeng Zhao on March 1.

The letter, from Senators Elizabeth Warren (D-Ma), Chris Van Hollen (D-Md) and Roger Marshall (R-Ks), is written as follows:

“Binance and its related entities have purposefully evaded regulators, moved assets to criminals and sanctions evaders, and hidden basic financial information from its customers and the public.”

The letter, written to Changpeng Zhao, the chief executive of Binance, and Brian Shroder, his senior U.S. deputy, highlighted news articles from The Wall Street Journal and other publications regarding a slew of legal and financial concerns the company was facing.

The senators requested Messrs. Zhao and Schroder to provide copies of Binance’s financial statements going back to 2017 as well as an estimation of the number of Americans who used its platforms during that time.

Moreover, they demanded evidence of the exchange’s anti-money-laundering rules and practices, details on the connection between the international exchange and its American branch, Binance.US, and any communications regarding Mr. Zhao’s alleged efforts to restrict compliance. Senators requested a response by March 16.

Nonetheless, the company’s subsidiary, Binance.US handles all of the company’s US-related activities, according to the exchange.

According to Coincu‘s previous report, the exchange is preparing for substantial sanctions for prior behavior.

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Harold

Coincu News