Binance may have lied to US lawmakers, argue senators: Report
Binance may have misled lawmakers in the United States about its business dealings and relationship with its local unit in a letter sent in March, Bloomberg reported on June 8.
In a letter sent to United States Attorney General Merrick, senators Elizabeth Warren and Chris Van Hollen asked the Justice Department to investigate whether Binance made a false statement to Congress earlier this year. In a lawsuit filed on June 5, the Securities and Exchange Commission (SEC) alleged that Binance's global entity and American unit were commingled.
Today we charged Binance Holdings Ltd. (Binance); U.S.-based affiliate, BAM Trading Services Inc., which, together with Binance, operates https://t.co/swcxioZKVP; and their founder, Changpeng Zhao, with a variety of securities law violations.https://t.co/H1wgGgR5ir pic.twitter.com/IWTb7Et86H
In March, three U.S. senators led by Elizabeth Warren sent a letter to Binance CEO Changpeng “CZ” Zhao and Binance.US CEO Brian Shroder questioning the exchange's operations and requesting balance sheets. At that time, the senators alleged that Binance and its American arm attempted to evade local regulators, avoid sanctions, and facilitate money laundering.
Nearly three weeks later, Binance chief strategy officer Patrick Hillman sent the requested documents to Congress along with a 14-page letter diving into the exchange’s compliance history, recognizing previous mistakes and claiming the firm has built solid Know Your Customer and Anti-Money Laundering policies in the past years.
The independence of Binance.US from its global unity is critical for two reasons: regulatory jurisdiction and liability in the event of a failure, Syracuse University law professor Jack Graves told Cointelegraph.
"If you
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