senators said. June 8 The U.S. Department of Justice argued that it should investigate previous statements made by Binance and take action if necessary.
Democratic Senators Elizabeth Warren and Chris Van Hollen allege that Binance and Binance.US made false statements to Congress in their March 2023 letter.
At the time, Binance said its global and U.S. companies were separate entities and that Binance.US is highly compliant with regulations.
Senator Says He Has ‘Undermined’ Binance’s Process
However, senators said those statements were not true given the new charges against Binance and related parties by the U.S. Securities and Exchange Commission (SEC). The lawsuit specifically illustrates the role of Binance CEO Changpeng Chao in helping U.S. customers bypass geographic blocks, a fact referenced by senators today.
The senators said Binance’s apparently dishonest response was significant as the bipartisan regulator was originally seeking information to help implement the new law. Binance and Binance “wrecked this process,” the senators said.
Justice Department may impose fines and imprisonment
The senators argued that the Binance and Binance.US statements violated federal law and could lead the Justice Department to impose fines and imprisonment on executives.
Zhao and many other Binance executives are not US citizens, so it is unclear how much action the Justice Department can take against them.
A post by Elizabeth Warren asking the Justice Department to investigate Binance’s congressional remarks first appeared on CryptoSlate.