It appears that Binance is now at the center of everyone's attention.
In a recent development, the United States Department of Justice (DOJ) has been called upon to examine possible deceptive declarations made by cryptocurrency exchange Binance.
As per a report by Bloomberg, the appeal comes from a formal communication penned by a pair of Senate Democrats, who suspect Binance of misinforming legislators regarding its operations.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
How to Pick the Right DeFi dApp? (Dos and Don’ts Explained)
Democratic Senators Elizabeth Warren of Massachusetts and Chris Van Hollen of Maryland urged US Attorney General Merrick Garland to investigate the allegations.
The pair raised concerns about the truthfulness of Binance's representation of its US affiliate, Binance.US, as an entirely independent body, which they perceive as potentially deceptive.
In the wake of a lawsuit filed by the US Securities and Exchange Commission (SEC) against Binance and its CEO, Changpeng "CZ" Zhao, the Senators' request has gained further significance. The SEC suit accuses Binance of trading unregistered securities, misappropriation of customer funds and alleges Zhao's hidden control of Binance.US.
In their written communication, Senators emphasized the severity of the situation. "This is a serious matter," they wrote in the letter sent out on June 7th.
Earlier in March, Warren and Hollen had raised concerns about Binance, branding it a "hotbed of illegal financial activity." They had written to CZ and Binance.US, seeking details about the company's financial activities and measures taken against money laundering. Their previous letter stated:
While Mr. Zhao has claimed that Binance.US, is a 'fully independent entity', in reality, he controls the company as a 'de facto subsidiary' of Binance.
The unfolding situation reiterates the importance of transparency and accountability in the cryptocurrency industry, with the world watching closely as the legal drama ensues.
