Binance has responded to a letter from United States Senators in early March asking for information about crypto exchange operations in the country, including its balance sheet.
According to a March 18 report, Binance’s response did not include the requested financial data. Bloomberg learned from an anonymous source that the exchange, although omitted from the letter, did provide the information to US regulators.
In the 14-page document, Binance Chief Strategy Officer Patrick Hillman delves into the exchange’s compliance history, recognizes previous failures and claims the company has had solid know-your-customer and anti-money laundering policies in recent years. established guidelines. However, the response did not address the senator’s concerns about Binance’s lack of transparency.
Hillman noted in the letter:
“Binance uses both internal and established third-party tools to scan user transactions and profiles in real time […] Between August 2021 and November 2022, Binance halted over 54,000 transactions due to transaction monitoring alerts.”
On March 2, three U.S. Senators, led by Elizabeth Warren, sent a letter to Binance CEO Changpeng “CZ” Zhao and Binance.US CEO Brian Shroder, raising concerns about Binance’s operations and the company’s balance sheets requested.
According to the senators, there is evidence that Binance and its American arm have attempted to circumvent US regulators, evade sanctions and facilitate money laundering of at least $10 billion. “The little information available to the public about Binance’s finances suggests that the exchange is a hotbed of illicit financial activity,” the senators wrote in the letter.
Binance has previously stated that the two companies are separate entities with independent management and operations.
The senator’s requests included “all balance sheets of Binance and Binance affiliates from 2017 to date,” as well as anti-money laundering and similar policies, and documents regarding Binance’s relationship with Binance.US.
The U.S. Securities and Exchange Commission (SEC) launched an investigation into Binance.US in February over trading companies allegedly linked to Binance CEO Changpeng Zhao. An investigative report suggests that Binance was behind a transfer of around $400 million in funds from a Binance.US account to a trading firm run by CEO Changpeng Zhao.
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