Binance’s Response To US Senators Lacks Financial Transparency
- Binance has responded to criticisms from U.S. senators without addressing financials.
- Binance’s response noted that the company has a team of approximately 750 core and supporting compliance staffers, including various former regulatory and law-enforcement officials.
- Binance uses internal tools and tools from third-party vendors to scan user transactions and profiles in real-time.
According to Bloomberg’s report on March 18, crypto exchange Binance has responded to criticisms from U.S. senators without addressing financials.
In the 14-page letter, Binance’s Chief Strategy Officer, Patrick Hillmann, described the company’s compliance efforts but offered limited details of its finances. The response failed to provide most of the information the senators had requested in a March 1 letter.
The Senate Banking Committee, including Elizabeth Warren, Chris van Hollen, and Roger Marshall, wrote to BNB and Binance.US about their operations. The senators alleged, “BNB 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 bipartisan trio also asked for information about the relationship between BNB and Binance U.S. and any communications about alleged efforts by CEO Changpeng Zhao to limit compliance.
BNB’s response, dated March 16, emphasized that BNB and its U.S. arms are “separate entities — contrary to suggestions in public reporting.” However, the response did not provide much of the information that the senators had requested. BNB’s response noted that the company has a team of approximately 750 core and supporting compliance staffers, including various former regulatory and law-enforcement officials.
The letter further highlighted that BNB uses internal tools and tools from third-party vendors to scan user transactions and profiles in real-time. Binance has reportedly stopped over 54,000 transactions due to transaction monitoring alerts between August 2021 and November 2022, according to Hillmann’s letter.
Despite the response, the senators have not backed down from their scrutiny of BNB. The senators reportedly stated that they will continue to press the company to answer their questions fully. The senators’ accusations against Binance are part of a broader effort by U.S. regulators to tighten oversight of cryptocurrency exchanges and other firms in the digital asset industry.
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