Binance And Tether Accused By Lawmakers: DOJ Investigation Requested For Illicit Finance
27 Oktober 2023 - 12:00AM
NEWSBTC
In a recent development, US lawmakers have urged the US Department
of Justice (DOJ) to initiate a criminal investigation into
cryptocurrency exchange Binance (BNB) and stablecoin issuer Tether
(USDT). The lawmakers, led by Senator Cynthia Lummis,
reference a controversial Wall Street Journal (WSJ) report that
alleges Hamas and its affiliate raised significant funds through
cryptocurrencies. Binance And Tether Face Calls For Criminal
Charges In a joint letter signed by Senator Lummis and
Representative French Hill, the lawmakers express deep concern over
reports indicating that “unregulated crypto intermediaries” outside
the United States have allegedly facilitated illicit financial
activities, including financing terrorism, such as Hamas’s attacks
on Israel. Lummis and Hill urged the DOJ to promptly reach a
charging decision regarding Binance, considering the extent of its
involvement, and to conclude the ongoing investigation into
Tether’s alleged illicit activities. Related Reading: FTX Ramps Up
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The lawmakers refer to the WSJ report of October 10, 2023, which
disclosed that Hamas, Palestinian Islamic Jihad, and Hezbollah had
received cryptocurrency funding since August 2021. They stress the
DOJ’s need to hold any entities facilitating illicit activities
accountable. The letter further reads: We believe that it’s
imperative that the Department of Justice hold bad actors
accountable if they are shown to facilitate illicit activity.
Binance, notably, is an unregulated crypto asset exchange based in
the Seychelles and Cayman Islands. Binance has historically been
linked to illicit activity and is purportedly the subject of a
current Department of Justice investigation. On the other hand,
Tether faced a fine by the Commodity Futures Trading Commission
(CFTC) in 2021 for issues related to backing its stablecoin
USDT. The lawmakers urged the DOJ to thoroughly assess
whether Binance and Tether have provided material support and
resources for terrorism by violating applicable sanctions laws and
the Bank Secrecy Act. Lummis and Hill emphasize the importance of
swift action to cut off funding sources for terrorists targeting
Israel. Tether Counters Allegations In response to Senator Lummis
and Rep. Hill’s claims, Tether issued a statement addressing the
“misinformation” surrounding the potential misuse of
cryptocurrencies. Tether references independent
investigations by Chainalysis and Elliptic, which found significant
errors and faulty attribution techniques in reports, including the
WSJ’s article. Tether emphasizes its commitment to regulatory
compliance, due diligence, and global collaboration with law
enforcement agencies. They highlight their track record of freezing
assets tied to illicit activities and assert no evidence of
sanctions law or Bank Secrecy Act violations. Related Reading:
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December 2024 Tether further notes the inherent transparency of
blockchain technology and the proactive measures taken by virtual
asset service providers to monitor and report potentially illicit
activities. They reaffirm their dedication to transparency,
compliance, and collaboration with authorities, inviting
constructive dialogue and cooperation. As the call for a DOJ
investigation unfolds, the cryptocurrency community awaits further
developments and the potential impact on Binance and Tether’s
operations. As of this writing, BNB is trading at $221,
representing a decrease of 0.9% within the last 24 hours. However,
it is worth noting that the token has experienced significant gains
over the past seven and thirty days, amounting to 5.3% and 4.9%,
respectively. Featured image from Shutterstock, chart from
TradingView.com
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