Binance responded to a letter from U.S. senators dated early March asking for information on cryptocurrency exchange operations in the country, including its balance.
According to a March 18 report, Binance’s response did not contain the requested financial data. From an anonymous source, Bloomberg learned that despite the lack of information in the letter, the exchange sent information to US regulators.
In the 14-page document, Binance Chief Strategy Officer Patrick Hillman dives into the exchange’s compliance history, acknowledging previous mistakes and asserting that the firm has developed robust Know Your Customer and Anti-Money Laundering policies in recent years. However, the response did not take into account the senator’s concerns about Binance’s lack of transparency.
Hillman noted in a letter:
“Binance uses both internal and well-known third party tools to scan transactions and user profiles in real time. […] Between August 2021 and November 2022, Binance stopped over 54,000 transactions as a result of transaction monitoring alerts.”
On March 2, three U.S. senators, led by Elizabeth Warren, sent a letter to Binance CEO Changpeng “CZ” Zhao and Binance CEO. US to Brian Schroder, in which they expressed concern about the activities of Binance and requested balance sheets of companies.
There is evidence that Binance and its US arm tried to evade US regulators, evade sanctions, and facilitated the laundering of at least $10 billion, according to senators. “What little is available to the public about Binance’s finances suggests that the exchange is a hotbed of illicit financial activity,” the senators wrote in the letter.
Binance has previously stated that the two companies are separate entities with independent governance and operations.
Among the senator’s requests were “all balances of Binance and Binance subsidiaries from 2017 to present”, as well as anti-money laundering and similar policies, as well as documents on the relationship between Binance and Binance. US.
The US Securities and Exchange Commission (SEC) launched an investigation into Binance in February. US regarding trading firms allegedly associated with Binance CEO Changpeng Zhao. The investigative report suggests that Binance is behind the transfer of approximately $400 million worth of funds from the Binance account. US into a trading firm run by CEO Changpeng Zhao.
