Three US senators led by Elizabeth Warren have sent a letter to Binance CEO Changpeng Zhao (CZ) and Binance.US CEO Brian Shroder expressing concern about a number of facets of Binance’s activities and they ask companies for information that includes their balance sheets.
Crypto skeptic Warren’s co-signers were fellow Democrat Chris Van Hollen and Republican Roger Marshall. They said there is evidence that the companies tried to circumvent US regulators, that the companies sanction evasion and facilitated the laundering of at least $10 billion, and that they lacked transparency.
“The little information about Binance’s financials available to the public suggests that the exchange is a hotbed of illegal financial activity,” the senators wrote, concluding:
“The apparent attempts by their companies to circumvent the enforcement of anti-money laundering laws, securities laws, reporting requirements, and other financial regulations cast serious doubts on the stability and legitimacy of Binance and its related entities, and on their commitment to their customers.”
The senators requested documents and other information. At the top of the list are “all balance sheets of Binance and its affiliates from 2017 to the present.” In addition, they ask for copies of anti-money laundering policies and the like, documentation on the relationship between Binance and Binance.US and other information, as well as explanations on various news. Recipients were given two weeks to respond.
As the letter made clear in its 59 footnotes, Binance has been the subject of intense scrutiny from the press and some negative speculation. CZ, a prolific tweeter, has personally responded to some of the reports. In February it was reported that Binance was preparing to resolve outstanding regulatory and law enforcement issues in the United States and that he would possibly be subject to sanctions.
A bipartisan group of senators—Warren, Van Hollen and Marshall—accused the world’s largest crypto exchange, Binance, of being “a hotbed of illegal financial activity” and asked the company to respond to a list of questions. https://t.co/1JNCluT1b0
—Paul Kiernan (@pkwsj) March 2, 2023
A bipartisan group of senators – Warren, Van Hollen and Marshall – accused Binance, the world’s largest cryptocurrency exchange, of being “a hotbed of illegal financial activity” and asked the company to respond to a list of questions.
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