Republican Lawmakers Urge DOJ To Investigate Binance Over Illicit Financing Allegations

A group of Republican lawmakers has called on U.S. Attorney General Merrick Garland to contemplate levying charges against the crypto exchange platform Binance BNB/USD, following reports suggesting its potential involvement in financing illicit activities.

Binance didn't immediately respond to Benzinga's request for comment.

The letter, dated Oct. 26, 2023, also requested the Department of Justice (DOJ) to expedite its investigations into Tether's USDT/USD possible connections to illicit finance operations.

Tether responded with a statement, saying, "There is simply no evidence that Tether has violated Sanctions laws or the Bank Secrecy Act through inadequate customer due diligence or screening practices."

The backdrop of this development coincides with Benzinga's much-anticipated Future of Digital Assets conference slated for Nov. 14. This conference aims to discuss the trajectory of digital currencies and the opportunities and challenges they present for global financial markets. Given the recent scrutiny facing Binance and Tether, it is likely that the conference will also touch upon regulatory aspects and the importance of weeding out malpractices in the crypto space.

Also Read: The True Cost Of The FTX Collapse: How Much Did Sam Bankman-Fried Really Make?

The letter from the lawmakers highlights serious concerns about unregulated and centralized crypto asset intermediaries based outside the U.S.

They point out that these entities might have played a role in the financing of significant illicit activities, including alleged support for Hamas' attack on Israel.

While the representatives acknowledged the potential of crypto assets and distributed ledger technology in reshaping U.S. financial markets, they emphasized the importance of not branding all crypto-related entities with suspicion due to the actions of a few.

Read Next: SEC Chief Gary Gensler Affirms Crypto As Securities, Cites 'Fraud, Scams, Bankruptcies'

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