Senator Warren Probes Binance’s Finances and Operations
US Senator Elizabeth Warren has launched an investigation into cryptocurrency exchange Binance and its American arm Binance.US.
Warren has raised questions about the companies’ finances and operations in an open letter addressed to Binance CEO Changpeng Zhao and Binance.US CEO Brian Shroder.
Warren has expressed concern over Binance’s alleged attempts to evade financial regulations and its lack of transparency. She has accused the companies of not having the necessary separation they claim to have, citing the example of collapsed crypto exchange FTX and its subsidiary FTX.US.
In her letter, Warren has listed seven demands for information from Zhao and Shroder. She has asked for complete copies of all balance sheets from 2017 to the present, an estimate of the number and percentage of US-based users, and information on a 2018 plan to create a company called the “Tai Chi entity.”
Warren has also requested information on the companies’ anti-money laundering policies, any communications regarding know-your-customer checks, and a complete list of US-based platforms that have used Binance.com for trading or lending services.
Warren’s investigation could have significant implications for Binance and Binance.US, and it remains to be seen how the companies will respond to her demands for information.