Two Democratic senators have called for an investigation into Binance over claims believed to be false regarding its ties to Binance.US, its US subsidiary. The interested parties had already made a similar request last March, and had then received a response which they considered to be incomplete in view of the information requested.
https://cryptoast.fr/feed/
Binance continues to wipe out complaints in the US
According to information from Bloomberg, 2 Democratic senators, namely Elizabeth Warren and Chris Van Hollen, asked the US Department of Justice (DOJ) to investigate Binance.
Through a letter directly addressed to the Attorney General of the United States, the 2 senators accuse the Changpeng Zhao platform of having made false declarations, in particular concerning the existing links between it and its American subsidiary Binance.US. A major point that has already earned Binance much criticism in the past, including in the recent complaint issued by the Securities and Exchange Commission (SEC) against it.
According to a Wall Street Journal article dated June 7, 2023, former Binance.US CEO Brian Brooks stated that “ what became clear to me at some point was that CZ was the managing director of BAM Trading [Binance.US, NDLR]not me “. He will also have resigned only 3 months after taking up his post at the American subsidiary.
In addition, he would also have learned shortly before the end of his duties at Binance.US that a “ group of employees based in Shanghai » was remunerated by the American platform in the form of BNBthe Binance token which recently saw its price drop significantly following the Changpeng Zhao cases.
👉 Is it possible to buy free cryptocurrencies today?
Buy crypto on eToro
Cryptocurrency investing is offered by eToro (Europe) Ltd as a PSAN registered with the AMF. Investing in crypto-assets is highly volatile. There is no consumer protection. Investing is risky (find out more)
Fuzzy answers at Binance.US
Alongside Roger Marshall, a Republican senator, Elizabeth Warren and Chris Van Hollen had already written aa bipartisan letter last March aimed at shedding light on the relationship between Binance and its US subsidiaryoriginally created to be adapted to US jurisdiction.
To this, the platform replied that the 2 companies were indeed distinct, and that they each operated on their own while making compliance their priority. Referencing this response, the senators alleged that “ Binance and Binance.US undermined this important investigation and legislative process by providing false and misleading information to Congress in their request to the Department of Justice.
Already in March, senators had called Binance.US’ response evasive. While they asked for many specific administrative documents, including copies of balance sheets, data relating to the number of users per year or even archives on the internal policy of the company concerning its links with its parent company, Binance.US would have simply responded with ” few details » and documents « telling the story of the company “.
2 days ago, the SEC has issued an emergency motion to freeze funds hosted on Binance.USwhich led to the exodus of some market makers and mechanically caused price instability on some pairs including Bitcoin (BTC).
👉 Related – SEC Chairman Gary Gensler offered his services to Binance in 2019
Alyra, training to integrate the blockchain ecosystem
Source: Bloomberg
Newsletter 🍞
Receive a summary of crypto news every Monday by email 👌
What you need to know about affiliate links. This page presents assets, products or services relating to investments. Some links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky in nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital.
To go further, read our Financial Situation, Media Transparency and Legal Notices pages.
Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
749 items
