Two Democratic senators have called for an investigation into Binance over claims believed to be false regarding its ties to Binance.US, its US subsidiary. The interested parties had already made a similar request last March, and had then received a response which they considered to be incomplete in view of the information requested.
Binance continues to wipe out complaints in the US
According to information from Bloomberg, 2 Democratic senators, namely Elizabeth Warren and Chris Van Hollen, asked the US Department of Justice (DOJ) to investigate Binance.
Through a letter directly addressed to the Attorney General of the United States, the 2 senators accuse the Changpeng Zhao platform of having made false declarations, in particular concerning the existing links between it and its American subsidiary Binance.US. A major point that has already earned Binance much criticism in the past, including in the recent complaint issued by the Securities and Exchange Commission (SEC) against it.
According to a Wall Street Journal article dated June 7, 2023, former Binance.US CEO Brian Brooks stated that “ what became clear to me at some point was that CZ was the managing director of BAM Trading [Binance.US, NDLR]not me “. He will also have resigned only 3 months after taking up his post at the American subsidiary.
In addition, he would also have learned shortly before the end of his duties at Binance.US that a “ Shanghai-based employee group » was remunerated by the American platform in the form of BNBthe Binance token which recently saw its price drop significantly following the Changpeng Zhao cases.
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Fuzzy answers at Binance.US
Alongside Roger Marshall, a Republican senator, Elizabeth Warren and Chris Van Hollen had already written aa bipartisan letter last March aimed at shedding light on the relationship between Binance and its US subsidiaryoriginally created to be adapted to US jurisdiction.
To this, the platform replied that the 2 companies were indeed distinct, and that they each operated on their own while making compliance their priority. Referencing this response, the senators alleged that “ Binance and Binance.US undermined this important investigation and legislative process by providing false and misleading information to Congress in their request to the Department of Justice.
Already in March, senators had called Binance.US’ response evasive. While they asked for many specific administrative documents, including copies of balance sheets, data relating to the number of users per year or even archives on the internal policy of the company concerning its links with its parent company, Binance.US would have simply responded with ” few details » and documents « telling the story of the company “.
2 days ago, the SEC has issued an emergency motion to freeze funds hosted on Binance.USwhich led to the exodus of some market makers and mechanically caused price instability on some pairs including Bitcoin (BTC).
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Source: Bloomberg
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