Binance has recently responded to a letter from United States Senators requesting information about the exchange’s operations in the country, including its financial statements. While Binance’s response did not include the financial data requested, it has been reported that the exchange did send this information to U.S. regulators.
In the response letter, Binance’s chief strategy officer Patrick Hillman highlighted the exchange’s compliance history and its efforts to strengthen its Know Your Customer and Anti-Money Laundering policies in recent years. However, the letter failed to address the senators’ concerns about Binance’s transparency.
Hillman did note that Binance uses both internal tools and established third-party vendors to monitor user transactions and profiles in real-time, stopping over 54,000 transactions between August 2021 and November 2022 as a result of monitoring alerts.
The senators, led by Elizabeth Warren, raised concerns about Binance’s activities in a letter sent to Binance CEO Changpeng “CZ” Zhao and Binance.US CEO Brian Shroder on March 2. They requested the companies’ financial statements and other related documents, alleging that Binance attempted to evade U.S. regulators, evade sanctions, and facilitate money laundering of at least $10 billion.
Binance has claimed that Binance and Binance.US are separate entities with independent management and operations. However, among the senators’ requests were documents about the relationship between the two entities.
The U.S. Securities and Exchange Commission launched an investigation into Binance.US in February regarding trading firms allegedly connected to Zhao. An investigative report also suggested that Binance was involved in the transfer of around $400 million in funds from a Binance.US account to a trading firm managed by Zhao.