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U.S. Senators Tell DOJ to Investigate Binance for Potentially Lying to Lawmakers: Bloomberg

U.S. Senators Tell DOJ to Investigate Binance for Potentially Lying to Lawmakers: Bloomberg

CoindeskCoindesk2023/06/08 12:17
By:Sandali Handagama

Two senate democrats, including Sen. Elizabeth Warren, allege in a letter that the platform may have lied about Binance.US being an independent entity.

Crypto exchange Binance may have lied to lawmakers about its business practices and must be investigated by the U.S. Department of Justice (DOJ), , citing a letter from two Senate democrats.

Senators Elizabeth Warren and (D-Mass.) and Chris Van Hollen (D-Md), in their letter to U.S. Attorney General Merrick Garland, alleged the crypto exchange may have made false statements, including whether its affiliate Binance.US was indeed a separate entity as Binance had claimed.

On Monday, the U.S. Securities and Exchange Commission filed suit against Binance and its CEO Changpeng "CZ" Zhao, alleging the sale of unregistered securities, commingling of customer funds, and that CZ was "secretly" controlling .

“This is a serious matter,” the lawmakers reportedly wrote in Wednesday's letter.

In March, Warren and Hollen in a letter to CZ and Binance.US, requesting information on the entity's financials and anti-money laundering measures.

"While Mr. Zhao has claimed that , is a “fully independent entity,” in reality, he controls the company as a “de facto subsidiary” of Binance," the letter from March said.

Binance did not immediately respond to a request for comment.

Edited by Parikshit Mishra.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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