Elizabeth Warren inquires Binance about its current finances

US Senator Elizabeth Warren inquires about the crypto exchange Binance and its US Subsidiary over the current financial situation of the platform. She has sent a letter to the global CEO Changpeng Zhao and US CEO Brian Shroder. The letter includes several questions that aim to give users a clear view of the company’s operations. This way, users can decide whether to continue using the platform.

What does the letter say?

The letter first alleges that Binance has been evading anti-money laundering laws, securities laws, reporting requirements and other financial regulations. This begs the question if the platform is stable and legitimate and how committed they are to the customers. Elizabeth also questions whether Binance and the Binance US subsidiary are different and have enough separation.

She explained its importance, citing that the collapse of the crypto exchange FTX also led to FTX US’s downfall. Binance’s CEO is also saying the same things pointing to Binance US’s independence, but it seems all made up to Elizabeth Warren.

7 demands made by Elizabeth Warren

1.  She asked for all the copies of Binance and Binance US’s balance sheets from 2017.
2.  An estimate of the total number and fraction of Binance US users every quarter since 2017.
3.  Documentation and all related information regarding the plan to create the company called the ‘Tai Chi entity’ in 2018. Elizabeth also says that it looks like the idea of creating this company was to distract regulators.
4.  All information regarding the anti-money laundering, financial counter-terrorism and KYC policies that Binance and its subsidiaries follow.
5.  There have been reports that CZ didn’t want KYC policies at Binance. This would indeed weaken the anti-money laundering policies at the exchange. So, the senator wants a copy if there has been any such communication.
6.  Copy of all the policies and procedures on the relationship between Binance and its US subsidiary. And any form of communication documents if these policies have been made available to the public.
7.  A list of all US-based platforms that have utilised the services of Binance.com.

What are your thoughts as Elizabeth Warren inquires Binance about its operations? And do you think that the exchange will give all the required information? Let us know in the comments below. And if you found our content informative, share it with your family and friends.

Also Read: Australia’s internal documents for crypto legislation are revealed!