2 years ago
Three U.S. senators person asked crypto exchanges Binance and Binance US for documents and answers pertaining to “potentially amerciable concern practices.” The lawmakers told Binance CEO Changpeng Zhao (CZ): “Your actions person called into question the legitimacy of your concern and the information of your customers’ assets.”
U.S. Lawmakers Probe Binance
U.S. Senators Elizabeth Warren (D-MA), Chris Van Hollen (D-MD), and Roger Marshall (R-KS) sent a missive to Binance and Binance US connected Wednesday, calling for the crypto exchanges to “provide transparency astir perchance amerciable concern practices.”
The letter, addressed to Binance CEO Changpeng Zhao (CZ) and BAM Trading Services CEO Brian Shroder, asks for documents and answers concerning each crypto exchange’s “finances, hazard management, and regulatory compliance arsenic it faces investigations into imaginable crimes,” the senators detailed. Binance and its U.S. affiliate, Binance US, are 2 abstracted entities. BAM Trading Services is doing concern arsenic Binance US.
Citing assorted media reports claiming that Binance is facing aggregate investigations by instrumentality enforcement and regulators pursuing the illness of crypto speech FTX, the senators wrote:
Binance and its related entities person purposefully evaded regulators, moved assets to criminals and sanctions evaders, and hidden basal fiscal accusation from its customers and the public.
“Your actions person called into question the legitimacy of your concern and the information of your customers’ assets and raised concerns astir the imaginable interaction of these activities connected the stableness of the crypto marketplace and the broader fiscal system,” the senators stressed.
The missive besides notes that Binance hired French auditing firm Mazars to execute a proof-of-reserves (POR) audit connected its bitcoin holdings. However, the auditing steadfast subsequently “deleted the webpage containing the report” and paused its enactment relating to proof-of-reserves audits for crypto firms, the missive adds.
The senators concluded their missive by requesting “documents and answers” pertaining to a database of questions nary aboriginal than March 16. The documents requested by the lawmakers see “complete copies of each Binance and Binance subsidiary equilibrium sheets from 2017 to the present,” and their interior anti-money laundering (AML), countering the financing of coercion (CFT), and know-your-customer (KYC) policies and procedures.
A transcript of the senators’ missive was sent to Gary Gensler, president of the U.S. Securities and Exchange Commission (SEC); Rostin Behnam, president of the Commodity Futures Trading Commission (CFTC); and Merrick B. Garland, U.S. Attorney General with the Department of Justice (DOJ).
What bash you deliberation astir U.S. senators probing Binance and Binance US astir “potentially amerciable concern practices”? Let america cognize successful the comments conception below.
Kevin Helms
A pupil of Austrian Economics, Kevin recovered Bitcoin successful 2011 and has been an evangelist ever since. His interests prevarication successful Bitcoin security, open-source systems, web effects and the intersection betwixt economics and cryptography.
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