US Lawmakers Call for Criminal Investigation into Binance and Tether
US lawmakers, led by Senator Cynthia Lummis, have written a joint letter urging the US Department of Justice (DOJ) to initiate a criminal investigation into cryptocurrency exchange Binance and stablecoin issuer Tether. The lawmakers express concern over reports that suggest these entities have facilitated illicit financial activities, including terrorism financing. They reference a Wall Street Journal report that revealed Hamas raised significant funds through cryptocurrencies. The letter emphasizes the need for swift action to hold bad actors accountable and cut off funding sources for terrorists. It also mentions Binance’s history of alleged illicit activity and ongoing DOJ investigation, as well as Tether’s previous issues with regulatory compliance.
Tether Responds to Allegations
Tether has responded to the claims made by Senator Lummis and Representative Hill in a statement addressing the “misinformation” surrounding the potential misuse of cryptocurrencies. Tether refers to independent investigations that found errors in reports linking them to terrorist financing. They highlight their commitment to regulatory compliance, due diligence, and cooperation with law enforcement agencies. Tether also mentions their track record of freezing assets tied to illicit activities and asserts that there is no evidence of violations. They emphasize the transparency of blockchain technology and the proactive measures taken by virtual asset service providers to monitor and report potentially illicit activities.
Hot Take: Implications for Binance and Tether
The call for a criminal investigation into Binance and Tether by US lawmakers raises concerns about the future operations of these entities. If the DOJ decides to proceed with charges, it could have significant consequences for both organizations. Binance’s alleged involvement in illicit activities and ongoing investigation may further damage its reputation, while Tether’s previous issues with regulatory compliance could be brought into focus once again. The outcome of this investigation will be closely watched by the cryptocurrency community, as it has the potential to impact the industry as a whole.
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