Binance.US responds to senators’ letter on “potentially illegal” activities

admin March 3, 2023

0 1 minute read

Binance.US has responded to a letter issued by a US Senator. March 2 By professing compliance and stating that they will answer questions directly.

Binance acknowledges Senator’s letter

On March 2, various senators accused Binance.US of engaging in “potentially illegal” activities and asked the company to answer several questions.

A Binance.US spokesperson said in a statement: crypto slate:

We welcome engagement with policy makers, [senators’] request.

Its spokesperson said that Binance.US is “ [its] Including anti-money laundering (AML) procedures and other compliance programs.

Binance.US also explained the two policies it upholds.explained elsewhere The company has said it has enough crypto to cover all user balances) and does not lend or trade customer funds.

Senators demand tons of data

Responsible for the original letter are Senators Elizabeth Warren (Democrat, Massachusetts), Chris Van Hollen (Democrat, Maryland), and Roger Marshall (Republican, Kansas).

Their letter alleges that Binance.US seeks to evade US regulators, facilitates money laundering and sanctions evasion, and lacks transparency.

The senators specifically asked Binance.US and Binance subsidiaries to provide balance sheets, US user data, Know-Your-Customer (KYC) and AML information.

The letter also asks about the relationship between Binance.US and Binance and about the anti-KYC statement from Binance CEO Changpeng Zhao. It also requested information on Binance’s envisioned “Tai Chi” strategy document. The document is said to advocate creating an entity that shows a false interest in foreign regulation.

The Senator’s letter did not specifically address the recent controversy surrounding Binance.US’ alleged transfers to Merit Peak trading firm. However, the letter asks Binance.US for a list of US-based platforms that have used its service.

Earlier, on February 18th, Senator Roger Marshall said that the US Congress could conduct an investigation into Binance.US about Merit Peak and other issues.