Binance Exchanger - U.S. Senators sends letter to showcase proper Finance

[Flexystar]

Binance 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.

It all started with this statement from the U.S. Senator Elizabeth Warren (D-MA), Chris Van Hollen (D-MD), and Roger Marshall (R-KS). They have very high doubt that Binance is one of the exchanger associated with malpractices and is funding the accounts of Criminals as well as those who fled the sanctions imposed by U.S. on them

This is definitely one of the serious allegations on the world's most popular Crypto Exchanger. It is likely that it can cause negative impact on the crypto industry if this news came to be true and if Binance found guilty then it could damage the crypto space heavily.

To prove these allegations U.S. senator has sent a letter to Binance CEO Changpeng Zhao (CZ) and BAM Trading Services CEO Brian Shroder.

They have asked for all balance sheets starting from year 2017 until now so that it can be audited and checked for any doubtful practices that are underway. The implications gonna be worst if this is proven.

U.S. Senators Elizabeth Warren (D-MA), Chris Van Hollen (D-MD), and Roger Marshall (R-KS) sent a letter to Binance and Binance US on Wednesday, calling for the crypto exchanges to “provide transparency about potentially illegal business practices.”

The letter, addressed to Binance CEO Changpeng Zhao (CZ) and BAM Trading Services CEO Brian Shroder, asks for documents and answers concerning each crypto exchange’s “finances, risk management, and regulatory compliance as it faces investigations into potential crimes,” the senators detailed. Binance and its U.S. affiliate, Binance US, are two separate entities. BAM Trading Services is doing business as Binance US.

“Your actions have called into question the legitimacy of your business and the safety of your customers’ assets and raised concerns about the potential impact of these activities on the stability of the crypto market and the broader financial system,” the senators stressed.

The letter also notes that Binance hired French auditing firm Mazars to perform a proof-of-reserves (POR) audit on its bitcoin holdings. However, the auditing firm subsequently “deleted the webpage containing the report” and paused its activity relating to proof-of-reserves audits for crypto firms, the letter adds.

The senators concluded their letter by requesting “documents and answers” pertaining to a list of questions no later than March 16. The documents requested by the lawmakers include “complete copies of all Binance and Binance subsidiary balance sheets from 2017 to the present,” and their internal anti-money laundering (AML), countering the financing of terrorism (CFT), and know-your-customer (KYC) policies and procedures.

A copy of the senators’ letter was sent to Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC); Rostin Behnam, chairman of the Commodity Futures Trading Commission (CFTC); and Merrick B. Garland, U.S. Attorney General with the Department of Justice (DOJ).

US Senators Probe Crypto Exchange Binance About 'Potentially Illegal Business Practices'

[Captain Corporate]

KYC, thats literally the reason why we have KYC and binance.us asks for it as well. These old dinasours do not have a single clue about how binance works and I bet my money that they are just "advised" by someone to say these things, and "studied" the reports that were given to them without having any personal understanding if everything. Of course there is a possibility that a criminal person could get away with using Binance if they know what they are doing, but not with Binances acceptance that is, it would not be possible. They just have no idea what they are talking about and trying to make noise, that's it.

[stompix]

The documents requested by the lawmakers include “complete copies of all Binance and Binance subsidiary balance sheets from 2017 to the present,” and their internal anti-money laundering (AML), countering the financing of terrorism (CFT), and know-your-customer (KYC) policies and procedures.

Since Binance introduced KYC in 2021 and had basically no limit on trading and moving funds if you hit one of them you could simply have a new account in your dog's name I'm really curious how are they going to try to avoid this cause one thing for sure, even if they wanted to show something they don't have anything at all.

Seems like they're getting ready to steamroll them, the whole BUSD was just target practice.
If they will manage to convince the SEC to ask themselves for this it will be really and for Binance, this letter they can still ignore this as it's just a request, if Gary signs the next one, it's going to be different.

[UchihaSarada]

KYC, thats literally the reason why we have KYC and binance.us asks for it as well.

KYC is only helpful for exchangers to verify identity of good people but what do exchangers need to know identity of good people who don't do bad things, money laundering?

Bad people, criminals have other ways to break KYC requirement and they can successfully KYC and do money laundering too.

Why KYC is extremely dangerous – and useless
Did Binance or any exchanger succeed to rescure stolen fund for Axie Infinity team? They did not.

US officials link North Korean Lazarus hackers to $625M Axie Infinity crypto theft

KYC is to get our identity documents and we lost those documents forever.
KYC is to control sheeps, it is not to control wolves (and can not).

[hugeblack]

It all started with this statement from the U.S. Senator Elizabeth Warren (D-MA), Chris Van Hollen (D-MD), and Roger Marshall (R-KS). They have very high doubt that Binance is one of the exchanger associated with malpractices and is funding the accounts of Criminals as well as those who fled the sanctions imposed by U.S. on them

Are such letters sent by the US senator considered binding? What is the extent of information that they can access? Meaning, can they form an investigation committee from third parties, or will all that happen is that they will request data from users? Also, Binance Exchanger is a global company, so what data can the United States have access to?
In general, I hope that the end of the company will not be chaotic, but rather some fines.

[stompix]

Are such letters sent by the US senator considered binding? What is the extent of information that they can access? Meaning, can they form an investigation committee from third parties, or will all that happen is that they will request data from users?

No, they aren't in their current form, there was a previous case when they demand miners in the BMC group the numbers of the electricity they claim to use and the renewables part
They all went crickets as they knew it was going to be bad for them if they answered it.
So no, Binance can do the same or answer with something that has no further implications, the usual mumbo jumbo!

As for an investigation committee, yeah they can do that even now, nothing is stopping them but they need political support for it to actually do something meaningful.

Also, Binance Exchanger is a global company, so what data can the United States have access to?

Being global or as CZ calls it, decentralized means nothing really to the US, yeah Binance can ignore requests from Toga or Madagascar but depending on what they find out from the investigation and how much they really want to bring it down you will pretty soon see a change in CZ's attitude and willingness to share everything with the feds.

[hugeblack]

depending on what they find out from the investigation and how much they really want to bring it down you will pretty soon see a change in CZ's attitude and willingness to share everything with the feds.

No, my question is, can these senators go further, or is it just news statements, which will be forgotten, and to what extent can it go far, especially with the current situation, and I do not think that US legislators have much time to follow Biance, as what happen to FTX were the basis of their movements.
therefore if they found momentary reassurances, they will not search deeply, especially since we are talking about Binance.us, which will appear in a better position.

[stompix]

depending on what they find out from the ~

No, my question is, can these senators go further, or is it just news statements, which will be forgotten, and to what extent can it go far, especially with the current situation, and I do not think that US legislators have much time to follow Biance, as what happen to FTX were the basis of their movements.

That's why I was telling you it's all a matter of how much they want this.
They can just pretend they asked they got an answer and be done with it or they can start an investigation committee, if that gets traction and it has bi-artisan support with no opposition then it can lead to every known agency investigating everything about the said business, and they can subpoena anyone, like literally anyone!

While being legislative and not judicial indeed, and thus the committee can't judge anything they can ask for further investigation from the DoJ, and that's where judicial power and prosecution begin. And we all have seen what the DoJ can do, even overseas, like BitMex.

[adaseb]

In Canada we are getting similar actual of regulators against crypto companies. They are going after stablecoins because of what happened with Luna. And they are going after leveraged and margin trading because of what happened with FTX.

In the USA a month back they went after staking from exchanges like Kraken because of what happened with Voyager, Celcius and Gemini Earn. They do all of this after the fact and not before. They are doing this just so it seems like they are doing their job.

[beerlover]

It all started with this statement from the U.S. Senator Elizabeth Warren (D-MA), Chris Van Hollen (D-MD), and Roger Marshall (R-KS). They have very high doubt that Binance is one of the exchanger associated with malpractices and is funding the accounts of Criminals as well as those who fled the sanctions imposed by U.S. on them

Elizabeth Warren? The women who said that she was native American and turned out she wasn't? The women who Bernie Sanders said should run for president in 2015 and then again in 2020 she said Bernie doesn't want women to run for presidency? The same Bernie who had a woman running mate? Elizabeth Warren who turned from Republican (family still republican) into Democrat to get more votes based on the votes of where she lived? Realizing it is more likely to be voted in if she lists as Democrat?

I know that there are some corrupt and bad officials in governments, and elected officials should not be trusted, but she certainly takes the cake, should be ignored even if she says 2+2 equals 4.