US DOJ Told To Investigate Binance
Massachusetts Senator Elizabeth Warren and Maryland Senator Chris Van Hollen have asked the US Justice Department to look into the troubled cryptocurrency exchange Binance for potentially making misleading statements to Congress about its business operations. Senators voiced concerns prompted by the SEC’s latest 136-page complaint, which contends that Binance.US, Binance’s American affiliate, was not actually a distinct corporation as declared, in a letter to US Attorney General Merrick Garland.
The letter follows an earlier inquiry launched in March by Senators Warren, Van Hollen, and Republican Senator Roger Marshall of Kansas. The senators requested details on the Binance exchange’s relationship with its US branch, as well as relevant financial data. Binance had previously maintained that the two organisations were distinct and emphasised its commitment to compliance. The SEC’s complaint, on the other hand, argues differently, putting further doubt on the exchange’s claims.
Notably, this is not the first time that worries about Binance’s independence and its US arm have surfaced. Texas state officials had previously expressed similar concerns about the two corporations’ relationship.
(With inputs from Shikha Singh)
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