Binance and Tether Under Scrutiny From Congress

US lawmakers are urging the Department of Justice (DOJ) to take action against major crypto platforms, Binance and Tether, over allegations of involvement in illicit financial activities. This call follows reports of unregulated crypto intermediaries possibly facilitating illicit financial activities in recent years.

In a formal letter to Attorney General Merrick Garland, lawmakers expressed concern about unregulated crypto intermediaries’ alleged role in illicit financial activities and stressed the importance of safeguarding the industry’s reputation.

The Wall Street Journal reported that some groups received funding through crypto assets, but subsequent investigations have raised doubts about the accuracy of these claims. Binance, based in the Seychelles and Cayman Islands, is under investigation for potentially facilitating transactions for entities involved in terrorism and violating sanctions laws and the Bank Secrecy Act.

Tether, a stablecoin payment issuer, is also a source of concern for allegedly violating sanctions laws and the Bank Secrecy Act, despite its product’s use in illicit activities.

Tether issued an official statement refuting these allegations and reaffirming its commitment to transparency and compliance. Independent investigations by Chainalysis and Elliptic found inaccuracies in data presented by mainstream media outlets. Tether highlighted the significant difference between reported figures related to illicit funds and actual numbers.

The statement emphasized Tether’s rigorous verification processes and its dedication to regulatory compliance and collaboration with law enforcement agencies. Tether has a track record of freezing $835 million associated with illicit activities and working with 31 law enforcement agencies across 19 jurisdictions.

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