US Senators Accuse Binance of Illegal Financial Activity, Demand Answers on Money-Laundering and US Users

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In recent weeks, Binance, one of the world’s largest cryptocurrency exchanges, has found itself under intense scrutiny from U.S. senators and regulators. Moreover, users are now shifting their funds to DEX as Binance becomes a spotlight of regulatory warnings from several countries. While the BUSD trouble is still in progress, Binance has been accused of being a “hotbed of illegal financial activity” by lawmakers, who have demanded answers from the company on various issues, including its treatment of U.S. users, its finances, and its money-laundering controls.

Is Binance Connected To Illegal Activities?

Adding to Binance’s troubles, the Securities and Exchange Commission (SEC) has reportedly launched an investigation into the exchange’s stablecoin, Binance USD (BUSD). The SEC is looking into whether BUSD is backed by sufficient reserves and qualifies as a security under U.S. law. 

According to the report from Wall Street Journal, Binance, a leading cryptocurrency exchange, has been targeted by a bipartisan group of three US Senators who have demanded information regarding its money laundering controls. The Senators have accused the exchange of facilitating “illegal financial activity” and have pressed for transparency on the matter. 

Sens. Elizabeth Warren, Chris Van Hollen, and Roger Marshall wrote in a letter:

“Binance and its related entities have purposefully evaded regulators, moved assets to criminals and sanctions evaders, and hidden basic financial information from its customers and the public.”

The group of US Senators, in a letter, addressed to Binance CEO Changpeng “CZ” Zhao, have requested information related to the company’s balance sheets since 2017, internal protocols, and any exchanges regarding Zhao’s reported attempts to restrict compliance measures.

The Senators have set a deadline of March 16th for Binance to respond to their request.

Binance Is Now Facing Trouble From Around The World

The ongoing scrutiny marks a significant turning point for Binance, which has long been seen as one of the leading players in the cryptocurrency industry. The company has faced criticism in the past over its regulatory compliance, but it has largely been able to weather these storms and continue to grow.

However, the latest allegations against Binance have hit the company hard. The exchange’s CEO, Changpeng Zhao, has been forced to defend the company’s reputation in public statements, insisting that Binance takes its regulatory obligations seriously and is committed to working with authorities to address any concerns they may have.