Binance crypto exchange is facing further scrutiny as two U.S. senators call for an investigation into the company’s alleged false statements made to lawmakers.
According to a report by Bloomberg, Senators Elizabeth Warren and Chris Van Hollen have sent a letter to U.S. Attorney General Merrick Garland, urging the Department of Justice (DOJ) to look into Binance’s business practices.
The senators’ letter suggests that Binance may have provided misleading information to lawmakers, including false claims about its affiliate, Binance.US, being a separate entity.
The U.S. Securities and Exchange Commission (SEC) recently filed a lawsuit against Binance and its CEO, Changpeng Zhao (also known as CZ), alleging various violations, such as the sale of unregistered securities and the commingling of customer funds.
In their letter, Warren and Van Hollen express concern over the seriousness of the matter and highlight their previous remarks about Binance being a “hotbed of illegal financial activity.”
Back in March, the senators wrote a letter to CZ and Binance.US, seeking information on the company’s financials and anti-money laundering measures.
At that time, they disputed CZ’s claim of Binance.US being a fully independent entity, asserting that he controlled the company as a de facto subsidiary of Binance.
The allegations against Binance and its ongoing legal battle with the SEC have raised significant questions about the exchange’s compliance with regulatory requirements.
The senators’ request for a DOJ investigation underscores the need for transparency and accountability within the cryptocurrency industry.
As the investigation unfolds, Binance and CZ will face increased scrutiny from regulatory bodies and lawmakers. The outcome of this case could have far-reaching implications for the future of the exchange and the broader cryptocurrency market.
It remains to be seen how Binance will respond to these allegations and what actions the DOJ will take based on the senators’ request.