Kevin Helms
A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of economics and cryptography.
US Senators Investigate Crypto Exchange Binance Over ‘Potentially Illegal Business Practices’ – Regulation Bitcoin News
Three US senators have asked crypto exchanges Binance and Binance US for documents and answers related to “potentially illegal business practices”. The lawmakers told Binance CEO Changpeng Zhao (CZ): “Your actions have called into question the legitimacy of your business and the security of your customers’ assets.”
US lawmakers are investigating Binance
US Senators Elizabeth Warren (D-MA), Chris Van Hollen (D-MD) and Roger Marshall (R-KS) sent a letter to Binance and Binance US on Wednesday, asking the crypto exchanges to “provide transparency about potentially illegal business practices.”
The letter, addressed to Binance CEO Changpeng Zhao (CZ) and BAM Trading Services CEO Brian Shroder, requests documents and answers regarding each crypto exchange’s “financials, risk management and regulatory compliance when facing investigations of potential crimes,” the senators detailed. . Binance and its American affiliate, Binance US, are two separate entities. BAM Trading Services does business as Binance US.
The senators cite various media reports claiming that Binance is facing multiple investigations by law enforcement and regulators following the collapse of crypto exchange FTX:
Binance and its related entities have purposefully evaded regulators, shifted assets to criminals and sanctions evaders, and concealed basic financial information from its customers and the public.
“Your actions have called into question the legitimacy of your business and the security of your customers’ assets and raised concerns about the potential impact of these activities on the stability of the crypto market and the broader financial system,” the senators stressed.
The letter also notes that Binance hired French auditing firm Mazars to conduct a proof-of-reserves (POR) audit of its bitcoin holdings. However, the audit firm later “deleted the website containing the report” and stopped activity related to proof-of-reserve audits for crypto firms, the letter adds.
The senators concluded the letter by asking for “documents and answers” related to a list of questions by March 16. The documents the lawmakers requested include “full copies of all Binance and Binance subsidiary balance sheets from 2017 to present,” and their internal anti-money laundering (AML), counter-financing of terrorism (CFT), and know-your-customer (KYC ) guidelines and procedures.
A copy of the senators’ letter was sent to Gary Gensler, chairman of the US Securities and Exchange Commission (SEC); Rostin Behnam, Chairman of the Commodity Futures Trading Commission (CFTC); and Merrick B. Garland, US Attorney General at the Department of Justice (DOJ).
What do you think about US senators investigating Binance and Binance US for “potentially illegal business practices”? Let us know in the comments section below.
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