Two Republican members of Congress have written to AG Merrick Garland asking the Justice Department to take a closer look at cryptocurrency heavyweights.
U.S. lawmakers are pressuring the Justice Department to investigate Binance and Tether for allegedly providing massive illicit financing to terrorist groups including Hamas.
Sen. Cynthia M. Lummis of Wyoming and Rep. French Hill of Arkansas called in a letter to Attorney General Merrick Garland for “decisive action” if the companies are found to be complicit.
Senator Lummis tweeted:
When it comes to illicit finance, crypto is not the enemy, the bad guys are… I sent a letter asking the Department of Justice to complete its investigation and consider criminal charges against Binance and Tether following reports that they acted as Hamas middlemen and engaged in illegal activity.
According to the letter, Binance’s history with illicit financing and failure to freeze accounts linked to Hamas could constitute providing material support to terrorists under federal law. The lawmakers said Binance may also have willfully ignored anti-money laundering due diligence requirements.
The letter stressed that "bad actors" must face consequences if they condone illegal activity. It comes amid growing global scrutiny of the role of cryptocurrencies in potentially evading sanctions and financing terrorism. The Justice Department's investigation and any resulting actions could impact future policy and enforcement around illegal crypto financing.
However, the lawmakers stressed the importance of distinguishing companies seeking to comply with regulations from those that illegally exploit the technology. The letter noted that while the pseudonymity of cryptocurrencies poses a risk of abuse, most companies are committed to complying with regulations. The lawmakers are concerned that if the actions of a few unethical actors raise suspicion across the industry, it could have an impact on legitimate innovation.
The letter claims that Binance is an unregulated overseas exchange that has a history of facilitating illegal transactions. Israel reportedly ordered the closure of more than 100 additional Binance accounts after media reports revealed many of them were linked to Hamas. The lawmakers believe that despite public knowledge of the issue, Binance's actions in providing accounts to terrorist organizations could constitute material support for terrorists under U.S. law.
Tether responded to the news with a statement denying the lawmakers’ claims, writing:
"As a pioneer and leading entity in the stablecoin industry, Tether is uncompromising in its adherence to regulatory compliance and due diligence. Our rigorous verification processes, ongoing monitoring mechanisms, and cooperative approach with law enforcement agencies around the world demonstrate our unwavering commitment to deterring and combating illicit activity. There is simply no evidence that Tether has violated sanctions or bank secrecy laws through inadequate customer due diligence or screening practices." #TETHER #币安
