Binance Crypto exchange, one of the world’s largest digital currency exchanges, has responded to a letter from United States senators sent on March Second, which raised concerns about the exchange’s activities and requested financial data. The senators, led by Elizabeth Warren, argued that there is evidence that Binance Crypto exchange and its American arm aimed to evade United States regulatory authorities, evade sanctions and facilitated the laundering of at least $10 billion. They requested “all Binance Crypto exchange and Binance Crypto exchange subsidiary balance sheets from 2017 to the present,” likewise as Anti-Money Laundering and similar policies, and documents about the relationship betwixt Binance Crypto exchange and Binance.US.
Binance’s response, which was reportedly sent to United States regulatory authorities but did not include the financial data requested by the senators, was a 14-page document that emphasized the exchange’s compliance efforts and recognized past mistakes. Binance’s chief strategy officer, Patrick Hillman, noted in the letter that the exchange has built solid Know Your Customer and Anti-Money Laundering policies in recent years and leverages both internal tools and tools from established third party vendors to scan user transactions and profiles in real time. Hillman likewise indicated that betwixt August 2021 and November 2022, Binance Crypto exchange stopped over 54,000 transactions because of transaction monitoring alerts.
Regardless of Binance’s emphasis on compliance, the exchange’s response failed to address the senators’ concerns about transparency. The senators had argued that “what little information about Binance’s finances is available to the public implies that the exchange is a hotbed of illegal financial activity.” Binance Crypto exchange has previously indicated that Binance Crypto exchange and Binance. United States are separate entities with independent management and operations.
The United States Securities and Exchange Commission (SEC) launched a probe into Binance. United States in February regarding trading corporations alleged to be connected to Binance Crypto exchange CEO Changpeng Zhao. An investigative report has suggested that Binance Crypto exchange was behind a transfer of approximately $400 Million in funds from a Binance. United States account to a trading company managed by Zhao. The exchange has likewise faced regulatory scrutiny in other countries, including the United Kingdom and Japan.