Binance Under Siege: Senate Titans Rally For A Justice Department Takedown

Two U.S. senators, Elizabeth Warren (D-Mass.) and Chris Van Hollen (D-Md.), have urged the Department of Justice to look into allegations that Binance Holdings Ltd. BNB/USD may have been dishonest about its operations and structure in communications with lawmakers.

Questions Raised About The Independence Of Binance Entities

In a letter addressed to U.S. Attorney General Merrick Garland, the senators raised concerns about the veracity of statements made by Binance regarding the independence of its U.S.-based affiliate, Binance.US, Bloomberg reported.

These concerns were accentuated by a recent 136-page complaint lodged by the Securities and Exchange Commission (SEC) in a federal court.

The SEC alleged Binance’s global operations and Binance.US were not as autonomous as the company had previously claimed.

Also Read: SEC Issues A Summons To Binance CEO Changpeng Zhao, Who Says He Is Not Bound For Court

Senators: “This Is A Serious Matter”

The senators stressed the gravity of the situation in their correspondence, noting that the potentially misleading statements by Binance could have serious implications.

The senators had previously in March, along with Senator Roger Marshall (R-Kansas), sought information on the relationship between Binance and Binance.US, as well as various financial data.

In response to the inquiries, Binance asserted that itself and Binance.US were distinct entities and emphasized its commitment to compliance.

The Senators now feel this response might have been deceptive and could have undermined Congressional investigations and legislative procedures.

Binance's Response Lacked Financial Transparency

Patrick Hillmann, Binance’s chief strategy officer, was responsible for the company’s 14-page response to the senators' inquiries in March.

While the response outlined Binance's efforts to bolster its compliance program, it was found wanting in providing comprehensive financial information.

Binance has yet to respond to the Senators' letter.

Read Next: Binance.US Nukes Several Trading Pairs Amid SEC Lawsuit: What Crypto Investors Need To Know

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