- Binance has responded to criticisms from U.S. senators without addressing financials.
- Binance’s response noted that the company has a team of approximately 750 core and supporting compliance staffers, including various former regulatory and law-enforcement officials.
- Binance uses internal tools and tools from third-party vendors to scan user transactions and profiles in real-time.
Binance's Patrick Hillman answered a letter from United States Senators requesting information on Binance's operations in the country and its relationship with Binance.US.
According to Bloomberg’s report on March 18, crypto exchange Binance has responded to criticisms from U.S. senators without addressing financials.
In the 14-page letter, Binance’s Chief Strategy Officer,
Patrick Hillmann, described the company’s compliance efforts but offered
limited details of its finances. The response failed to provide most of the
information the senators had requested in a March 1 letter.
The Senate Banking Committee, including Elizabeth Warren,
Chris van Hollen, and Roger Marshall, wrote to BNB and Binance.US about their
operations. The senators alleged, “BNB and its related entities have
purposefully evaded regulators, moved assets to criminals and sanctions
evaders, and hidden basic financial information from its customers and the
public.” The bipartisan trio also asked for information about the relationship
between BNB and Binance U.S. and any communications about alleged efforts by CEO
Changpeng Zhao to limit compliance.
BNB’s response, dated March 16, emphasized that BNB and its
U.S. arms are “separate entities — contrary to suggestions in public
reporting.” However, the response did not provide much of the information that
the senators had requested. BNB’s response noted that the company has a team of
approximately 750 core and supporting compliance staffers, including various
former regulatory and law-enforcement officials.
The letter further highlighted that BNB uses internal tools
and tools from third-party vendors to scan user transactions and profiles in
real-time. Binance has reportedly stopped over 54,000 transactions due to
transaction monitoring alerts between August 2021 and November 2022, according
to Hillmann’s letter.
Despite the response, the senators have not backed down from
their scrutiny of BNB. The senators reportedly stated that they will continue
to press the company to answer their questions fully. The senators’ accusations
against Binance are part of a broader effort by U.S. regulators to tighten
oversight of cryptocurrency exchanges and other firms in the digital asset
industry.
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