US Senators Say Binance is Evading Regulatory Bodies
The US Senate Banking Committee, comprising Elizabeth Warren, Chris van Hollen, and Roger Marshall, has sent a letter to Binance CEO Changpeng Zhao and his US representative Brian Schroeder, demanding information on the company’s KYC/AML policy and money laundering control procedures.
The letter has also accused Binance of evading regulatory bodies, interrelations with criminals, and being a “hotbed of illegal financial activities,” citing reports from The Wall Street Journal and other major publications.
The politicians have asked for copies of the crypto exchange’s financial statements, the number of US users since 2017, details of the relationship between the parent company and its US subsidiary Binance.US, and information regarding Zhao’s attempts to evade regulators.
Furthermore, they compared the structure of the FTX Group to Binance’s, claiming them to be “eerily similar,” and noting the similarity between the statements about the independence of Binance.US and those of the former CEO of the bankrupt exchange Sam Bankman-Fried regarding FTX and FTX US.