{"id":10687,"date":"2023-03-03T03:08:49","date_gmt":"2023-03-03T03:08:49","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=10687"},"modified":"2023-03-03T03:08:50","modified_gmt":"2023-03-03T03:08:50","slug":"us-senators-probe-crypto-exchange-binance-about-potentially-illegal-business-practices","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=10687","title":{"rendered":"US Senators Probe Crypto Exchange Binance About &#8216;Potentially Illegal Business Practices&#8217;"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p><strong>Three U.S. senators have asked crypto exchanges Binance and Binance US for documents and answers pertaining to \u201cpotentially illegal business practices.\u201d The lawmakers told Binance CEO Changpeng Zhao (CZ): \u201cYour actions have called into question the legitimacy of your business and the safety of your customers\u2019 assets.\u201d<\/strong><\/p>\n<h2>U.S. Lawmakers Probe Binance<\/h2>\n<p>U.S. Senators Elizabeth Warren (D-MA), Chris Van Hollen (D-MD), and Roger Marshall (R-KS) sent a letter to Binance and Binance US on Wednesday, calling for the crypto exchanges to \u201cprovide transparency about potentially illegal business practices.\u201d<\/p>\n<p>The letter, addressed to Binance CEO Changpeng Zhao (CZ) and BAM Trading Services CEO Brian Shroder, asks for documents and answers concerning each crypto exchange\u2019s \u201cfinances, risk management, and regulatory compliance as it faces investigations into potential crimes,\u201d the senators detailed. Binance and its U.S. affiliate, Binance US, are two separate entities. BAM Trading Services is doing business as Binance US.<\/p>\n<p>Citing various media reports claiming that Binance is facing multiple investigations by law enforcement and regulators following the collapse of crypto exchange FTX, the senators wrote:<\/p>\n<p>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.<\/p>\n<p>\u201cYour actions have called into question the legitimacy of your business and the safety of your customers\u2019 assets and raised concerns about the potential impact of these activities on the stability of the crypto market and the broader financial system,\u201d the senators stressed.<\/p>\n<p>The letter also notes that Binance hired French auditing firm Mazars to perform a proof-of-reserves (POR) audit on its bitcoin holdings. However, the auditing firm subsequently \u201cdeleted the webpage containing the report\u201d and paused its activity relating to proof-of-reserves audits for crypto firms, the letter adds.<\/p>\n<p>The senators concluded their letter by requesting \u201cdocuments and answers\u201d pertaining to a list of questions no later than March 16. The documents requested by the lawmakers include \u201ccomplete copies of all Binance and Binance subsidiary balance sheets from 2017 to the present,\u201d and their internal anti-money laundering (AML), countering the financing of terrorism (CFT), and know-your-customer (KYC) policies and procedures.<\/p>\n<p>A copy of the senators\u2019 letter was sent to Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC); Rostin Behnam, chairman of the Commodity Futures Trading Commission (CFTC); and Merrick B. Garland, U.S. Attorney General with the Department of Justice (DOJ).<\/p>\n<p><em><strong>What do you think about U.S. senators probing Binance and Binance US about \u201cpotentially illegal business practices\u201d? Let us know in the comments section below.<\/strong><\/em><\/p>\n<p>Kevin Helms <\/p>\n<p class=\"article__body__author__info__about\">\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.<\/p>\n<p><i class=\"td-icon-font td-icon-mail-1\"\/><\/p>\n<p class=\"images_credits\"><em>Image Credits: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n<p><strong>Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<p>More Popular NewsIn Case You Missed It<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/news.bitcoin.com\/us-senators-probe-crypto-exchange-binance-potentially-illegal-business-practices\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Three U.S. senators have asked crypto exchanges Binance and Binance US for documents and answers pertaining to \u201cpotentially illegal business practices.\u201d The lawmakers told Binance CEO Changpeng Zhao (CZ): \u201cYour actions have called into question the legitimacy of your business and the safety of your customers\u2019 assets.\u201d U.S. Lawmakers Probe Binance U.S. Senators Elizabeth Warren [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10688,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[1],"tags":[],"class_list":["post-10687","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-updates"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/10687","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10687"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/10687\/revisions"}],"predecessor-version":[{"id":10689,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/10687\/revisions\/10689"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/10688"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10687"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10687"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10687"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}