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Binance News: Massachusetts Senator Elizabeth Warren and Maryland Senator Chris Van Hollen have called on the US Justice Department to investigate beleaguered crypto exchange Binance, over potential false statements made to lawmakers regarding its business operations. In a letter addressed to US Attorney General Merrick Garland, the senators highlighted concerns raised by the Securities and Exchange Commission’s (SEC) recent 136-page complaint, which alleges that Binance.US, the American affiliate of Binance, was not truly a separate entity as claimed.
Senators Seek Probe Into Binance’s Business Practices
The letter follows a previous inquiry initiated by Senators Warren, Van Hollen, and Republican Senator Roger Marshall of Kansas back in March. The senators sought information on the relationship between the Binance exchange and its US affiliate, along with requesting various financial data. At the time, Binance had stated that the two entities were separate and emphasized its commitment to compliance. However, the SEC’s complaint suggests otherwise, further casting doubt on the exchange’s claims.
Read More: Money Trail of Binance Shows $70 Billion Moved Through Signature & Silvergate Banks
Notably, this is not the first time concerns regarding the independence of Binance and Binance’s US arm came to light. State regulators in Texas had previously raised similar apprehensions about the relationship between the two entities.
SEC Lawsuit Raises Concerns Over Binance’s Compliance
In their letter to Attorney General Garland, the US Senators emphasized the importance of accurate information in the legislative process and expressed their belief that Binance and Binance.US may have undermined the investigation by providing misleading information to Congress. The senators stated, “This is a serious matter,” urging the Justice Department to take appropriate action.
The lawsuit filed by the SEC accuses Binance of engaging in the unregistered offer and sale of securities. Additionally, the exchange’s former Chief Compliance Officer is alleged to have willfully violated US regulations, as evidenced by private chats obtained by the authority. Binance’s CEO, Changpeng Zhao, also faces allegations comingling investor funds with the company’s own funds.
In the wake of this Binance news, the price of BNB — the exchange’s native cryptocurrency — dropped by 0.94% in a matter of minutes upon the announcement, and is presently being traded at roughly $265.
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