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In a recent development, US lawmakers have urged the US Department of Justice (DOJ) to initiate a criminal investigation into cryptocurrency exchange Binance (BNB) and<\/span> stablecoin issuer <\/span><\/a>Tether (USDT).\u00a0<\/span><\/p>\n The lawmakers, led by Senator Cynthia Lummis, reference a controversial Wall Street Journal (WSJ) <\/span>report <\/span><\/a>that alleges Hamas and its affiliate <\/span>raised significant funds<\/span><\/a> through cryptocurrencies.\u00a0<\/span><\/p>\n In a<\/span> joint letter<\/span><\/a> signed by Senator Lummis and Representative French Hill, the lawmakers express deep concern over reports indicating that \u201cunregulated crypto intermediaries\u201d outside the United States have allegedly facilitated illicit financial activities, including financing <\/span>terrorism<\/span><\/a>, such as Hamas\u2019s attacks on Israel.<\/span><\/p>\n Lummis and Hill urged the DOJ to promptly reach a charging decision regarding Binance, considering the extent of its involvement, and to conclude the ongoing investigation into Tether\u2019s alleged<\/span> illicit activities<\/span><\/a>.<\/span><\/p>\n The lawmakers refer to the WSJ report of October 10, 2023, which disclosed that Hamas, Palestinian Islamic Jihad, and Hezbollah had received cryptocurrency funding since August 2021. They stress the DOJ\u2019s need to hold any entities facilitating illicit activities accountable. The letter further reads:\u00a0<\/span><\/p>\n We believe that it\u2019s imperative that the Department of Justice hold bad actors accountable if they are shown to facilitate illicit activity. Binance, notably, is an unregulated crypto asset exchange based in the Seychelles and Cayman Islands. Binance has historically been linked to illicit activity and is purportedly the subject of a current Department of Justice investigation.<\/span><\/p>\n<\/blockquote>\n On the other hand, Tether faced a fine by the Commodity Futures Trading Commission (CFTC) in 2021 for issues related to backing its <\/span>stablecoin USDT<\/span><\/a>.\u00a0<\/span><\/p>\n The lawmakers urged the DOJ to thoroughly assess whether Binance and Tether have provided material support and resources for terrorism by violating applicable sanctions laws and the Bank Secrecy Act. Lummis and Hill emphasize the importance of swift action to cut off funding sources for terrorists targeting Israel.<\/span><\/p>\n In response to Senator Lummis and Rep. Hill\u2019s claims, Tether issued a <\/span>statement <\/span><\/a>addressing the \u201cmisinformation\u201d surrounding the potential misuse of cryptocurrencies.\u00a0<\/span><\/p>\n Tether references independent investigations by Chainalysis and <\/span>Elliptic<\/span><\/a>, which found significant errors and faulty attribution techniques in reports, including the WSJ\u2019s article.\u00a0<\/span><\/p>\n Tether emphasizes its commitment to regulatory compliance, due diligence, and global collaboration with law enforcement agencies. They highlight their track record of freezing assets tied to illicit activities<\/a> and assert no evidence of sanctions law or Bank Secrecy Act violations.<\/span><\/p>\n Tether further notes the inherent transparency of blockchain technology and the proactive measures taken by virtual asset service providers to monitor and report potentially illicit activities.\u00a0<\/span><\/p>\n They reaffirm their dedication to transparency, compliance, and collaboration with authorities, inviting constructive dialogue and cooperation.<\/span><\/p>\nBinance And Tether Face Calls For Criminal Charges<\/span><\/h2>\n
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Tether Counters Allegations<\/span><\/h2>\n