The crypto world was set abuzz after three US senators sent a letter to Binance - the world's largest crypto exchange. The letter, dated Wednesday, accused Binance of being "a hotbed of illegal financial activity" and asked for details of its money-laundering controls.
In response, a Binance spokesperson said that the exchange “always” responds to queries from jurisdictions in which it operates, and that the accusations were false. They added that Binance does not operate in or serve customers in the US.
According to the Wall Street Journal, Binance is believed to be preparing itself for a hefty fine due to its previous conduct. The company has said it will provide information to the senators in an effort to "correct the record" and prove that it is “the most trusted platform” around.
The letter, allegedly containing some false information, was sent by Sens. Elizabeth Warren (D-Mass.), Chris Van Hollen (D-Md.) and Roger Marshall (R-Kansas). They asked Binance for details of its balance sheets, internal procedures, and any communications that could prove the accusations.
Key Points
- US Senators are accusing Binance of being a "hotbed of illegal financial activity"
- Binance has denied the accusations, saying it follows all relevant regulations
- The exchange may face hefty fines for its past conduct
- The senators have asked Binance for details of its money-laundering controls
tl;dr
US Senators have accused Binance of being a hub of illegal financial activity and asked for details of its money-laundering controls. Binance has rejected the accusations and said it will provide information to the senators to prove its trustworthiness.