Binance.US responds to senators’ letter on “potentially illegal” activities
The company acknowledged questions from Elizabeth Warren and other senators.
Binance.US has responded to a letter published by U.S. senators on March 2 by professing compliance and stating that it will answer questions directly.
Binance acknowledges senators’ letter
On March 2, various senators alleged that Binance.US has engaged in “potentially illegal” activity and asked the firm to answer several questions.
A Binance.US spokesperson said in a statement to CryptoSlate:
We welcome engagement with policymakers and look forward to responding to the [senators’] requests.
That spokesperson added that Binance.US is “confident in the strength of [its] operations” including its anti-money laundering (AML) procedures and other compliance programs.
Binance.US also described two policies that it stands by: it said that it maintains 1:1 reserves (described elsewhere as meaning that the company has sufficient crypto to cover all user balances) and says that it does not lend or trade customer funds.
Senators ask for trove of data
The lawmakers responsible for the original letter are Senators Elizabeth Warren (D-Mass.), Chris Van Hollen (D-Md.), and Roger Marshall (R-Kan.).
Their letter alleges that Binance.US has attempted to evade U.S. regulators, has facilitated money laundering and sanctions avoidance, and has lacked transparency.
The senators specifically asked Binance.US and Binance subsidiaries to provide balance sheets, U.S. users data, and know-your-customer (KYC) and AML information.
The letter also asks about the relationship between Binance.US and Binance and inquires about anti-KYC statements from Binance CEO Changpeng Zhao. It additionally requests information about Binance’s supposed ‘Tai Chi’ strategy document, which is said to advocate for creating an entity to express false interest in foreign regulations.
The senators’ letter did not specifically address a recent controversy around Binance.US’s alleged transfers to Merit Peak trading firm. However, the letter does ask Binance.US for a list of U.S.-based platforms that have used its services — a question that would presumably shine some light on its past relationship with Merit Peak.
Previously, on Feb. 18, Senator Roger Marshall said that U.S. Congress could hold an inquiry into Binance.US over Merit Peak and other issues.