US regulators and media continue to push the biggest crypto brands. Today, a bipartisan group of three senators put pressure on a major Bitcoin exchange over money laundering allegations.
US senators asked this Bitcoin exchange to expose all communications
Three US senators contacted Binance asking for details on money laundering controls, the Wall Street Journal reported. Authorities accuse the world’s largest exchange by volume of being a “home of illegal financial activity”.
According to a March 1 letter sent to Binance CEO Changpeng “CZ” Zhao, the group requested details of the company’s balance sheets, internal procedures, and all communications regarding Zhao’s alleged efforts to limit compliance. cryptocoin.comAs we reported, global media company Forbes recently claimed that Binance used customer funds without notice.
Binance’s Asset Shuffling Eerily Similar To Maneuvers By FTX https://t.co/1Gtm9ZY8SK by @eltrade, @Steven_Ehrlich pic.twitter.com/JqCX81m9fX
— Forbes (@Forbes) February 27, 2023
The letter from three U.S. senators alleged that Binance and related entities “deliberately evaded regulators, diverting funds to criminals and evaders from sanctions, and concealing essential financial information from their customers and the public.”
Binance spokesperson replied
A Binance spokesperson who contacted CoinDesk said that it “always” responds to inquiries from jurisdictions in which it operates, but that the accusations made in the letter are false. “A lot of misinformation has been spread about our company, and we look forward to correcting records,” the spokesperson said, adding that the legal entity Binance.com does not operate or have customers in the US.
However, the company runs its US-related business through its subsidiary Binance.US. In response to Senators, the spokesperson added that the company will “provide information to help them better understand why we remain the most trusted platform among users worldwide.”
Leading Bitcoin exchange nearing compromise with US regulators
Binance is in the spotlight more than ever, especially after the collapse of FTX. As US regulators continued to investigate Binance, the exchange was preparing to pay fines for “fixing” past regulatory violations, The Wall Street Journal reported on Feb. Binance Chief Strategy Officer Patrick Hillmann said in this regard that the exchange is growing rapidly and was initially unaware of the myriad laws and regulations designed to prevent money laundering, sanctions avoidance and corruption.
While regulatory scrutiny on Binance has intensified following the November collapse of rival FTX, Binance has been under investigation by the US Attorney General for the Western District of Washington since at least 2018, according to Reuters. The Department of Justice (DOJ) has reportedly sent subpoenas to at least two exchanges in recent months, requesting records of their past transactions with Binance USA. The latest move from three senators confirms that US regulators will keep the pressure going.
