business operations and providing and maintaining the crypto asset services of the Binance.US Platform.”īinance claimed that it has “prioritized regulatory compliance” and Binance.US also claimed that “(P)rotecting our customers and providing the best possible experience has beenīAM Trading’s primary goal. Behind the scenes, however, Zhao and Binance were intimately involved in directing BAM Trading’s U.S. The Senators note that both Binance and Binance.US claimed that they were separate entities – however, the SEC’s filing said, “(Binance CEO Changpeng) Zhao and Binance created BAM Management and BAM Trading in the United States and claimed publicly that these entities independently controlled the operation of the Binance.US Platform. The Senators are releasing Binance’s response to their questions and because Binance.US claimed its response was confidential, will share these responses with the DOJ on a confidential basis. On March 1, 2023, Senators Van Hollen, Warren, and Roger Marshall (R-Kan.) wrote to the CEOs of Binance and Binance.US asking about the companies’ structure, operations, and practices to ensure compliance with anti-money laundering, countering financing of terrorism, and know-your-customer laws, including questions about the relationship between Binance and Binance.US and the companies’ compliance policies. “In short, Binance and Binance.US made two representations to Congress: that Binance and Binance.US were ‘separate entities,' and that Binance.US ‘prioritized regulatory compliance’ and had ‘best-in-class compliance function.’ If the allegations in the SEC filing are accurate, then it would appear that neither of these claims are true,” wrote the Senators. The Senators’ request to the DOJ comes as the Securities and Exchange Commission (SEC) filed a complaint against Binance for “blatant disregard of the federal securities laws and the investor and market protections these laws provide.” The allegations in the SEC’s filing indicate that Binance and Binance.US responses to the Senators’ March 2023 letters about their business practices are not true – a possible violation of federal law. Senators Chris Van Hollen (D-Md.) and Elizabeth Warren (D-Mass.), both members of the Senate Banking Committee, sent a letter to Attorney General Merrick Garland asking the Department of Justice (DOJ) to investigate the crypto exchanges Binance and Binance.US for potentially making a series of false statements to Congress. JVan Hollen, Warren Request DOJ Investigation of Crypto Exchange Binance’s Potentially False Statements to Congress New SEC Complaint Against Binance Indicates Company’s Responses to Senators’ Questions About Business Practices Aren’t True
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