The largest cryptocurrency exchange in the world, Binance, and its US affiliate are under investigation in the US for potential crimes like money laundering and tax evasion. Senators Chris Van Hollen of Maryland and Elizabeth Warren of Massachusetts have asked the US Justice Division to investigate Binance. They specifically brought up potential lies that the company may have told lawmakers about its business practices.
The SEC has expressed concerns regarding Binance.US, Binance’s affiliate in the United States, probably isn’t operating independently as advertised. Senators have requested a thorough examination of these concerns in a letter to US Attorney General Merrick Garland.
Binance and Binance are accused by senators.U.S. of Giving Congress False Data
Senators Warren, Van Hollen, and Republican Senator Roger Marshall of Kansas asked for data and financial details on the relationship between Binance and Binance in March.US. In its response, Binance argued that the two organizations had always existed as distinct legal entities and stressed their commitment to compliance. But the senators now formally declare Binance and Binance. Congress received incorrect and misleading information from the US, hurting the investigative and legislative process.
Patrick Hillmann, the chief strategy officer of Binance, signed the answer, which mainly discussed the company’s compliance initiatives but omitted significant financial information.
SEC Lawsuit Brings Attention to Binance’s Compliance Efforts Issues
Binance is charged with participating in the unregistered provision and sale of securities in response to the SEC’s action. According to private discussions that the regulatory body was able to obtain, the prior Chief Compliance Officer of the business is accused of knowingly breaking US laws. Furthermore, Changpeng Zhao, the CEO of Binance, is accused of mixing business assets with his personal funds.
The SEC further asserts that Zhao and the global company both had significant roles in overseeing the activities of the US-based company. The SEC has asked for a temporary restraining order to freeze specific property as part of their complaint.