Senators Call for DOJ Investigation into Binance and Tether for Alleged Support of Hamas
Senator Cynthia Lummis (R-Wyoming) and Representative French Hill (R-Arkansas) have jointly written a letter to the Department of Justice (DOJ), urging them to expedite their investigations into cryptocurrency platforms Binance and Tether. The lawmakers are concerned that these platforms may be supporting terrorist organizations like Hamas and want a decision on whether they should face prosecution.
Innovation Wins!
Both Senator Lummis and Representative Hill believe in the potential benefits of distributed ledger technology and cryptocurrencies in improving the US financial markets. They emphasize that it would be unfair to generalize all cryptocurrency businesses as dishonest due to the actions of a few individuals. Many entities in the crypto industry are committed to complying with money laundering and sanctions regulations.
Terrorist Groups and Crypto Funding
A report from The Wall Street Journal revealed that terrorist groups such as Hamas, Palestinian Islamic Jihad, and Hezbollah have been receiving funds through cryptocurrency assets since August 2021. While the exact amount is unknown, Lummis and Hill argue that those involved in facilitating these illegal activities should be prosecuted.
Binance Under Investigation
The unlicensed cryptocurrency exchange Binance, based in the Cayman Islands and Seychelles, is currently under investigation by the DOJ. Recent reports indicate that over 100 Binance accounts linked to Hamas have been closed since hostilities erupted in October 2023. Israeli authorities have also seized more than 190 Binance accounts associated with terrorism between 2021 and 2023.
Binance is accused of allowing terrorist groups to create accounts and conduct financial transactions, potentially violating federal laws. The exchange is also accused of neglecting customer due diligence and screening, which enables the funding of terrorist activities.
Tether Faces Investigation
Tether, a stablecoin issuer with offices in Hong Kong and the British Virgin Islands, is also under scrutiny. According to a report from the Financial Times, Tether froze 32 addresses in Israel and Ukraine linked to Hamas and organizations connected to Russia at the request of Israeli law enforcement.
Tether is accused of not doing enough to verify its customers and screen transactions, despite being aware that its product can be used for illicit purposes. The company’s leaders are reportedly being investigated for bank fraud related to their use of US financial services. Tether has previously faced penalties for making misleading claims about its reserves.
Crackdowns Are About to Intensify
Senator Cynthia Lummis and Representative French Hill are calling for a thorough investigation by the DOJ into Binance and Tether’s alleged involvement in supporting terrorism through violations of sanctions laws and the Bank Secrecy Act. They strongly support swift legal action against these platforms to cut off funding sources for terrorist activities targeting Israel.
Hot Take: Urgent DOJ Investigation Needed into Binance and Tether for Alleged Support of Terrorism
Senator Cynthia Lummis and Representative French Hill have demanded that the Department of Justice (DOJ) speed up their investigations into Binance and Tether over allegations of supporting terrorist organizations like Hamas. They argue that while cryptocurrency businesses should not be generalized as dishonest, those involved in illegal activities must face prosecution. Recent reports suggest that both Binance and Tether have been linked to terrorist financing, raising concerns about their compliance with regulations. It is crucial for the DOJ to conduct a comprehensive inquiry into these allegations and take appropriate legal action to prevent further funding of terrorist activities.
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