The senator Cynthia Lummis and the deputy French Hill sent an open letter to the US Department of Justice on Thursday (26), requesting that both brokers be sued Binance as regards Tetherresponsible for the USDT stablecoin.
In short, politicians claim that both companies have facilitated terrorist activities abroad. More specifically, they cite the Israeli invasion, stating that Palestinian terrorist groups, such as Hamas, have received millions in cryptocurrency donations since August 2021.
Although Tether immediately refuted the allegations, Binance has yet to comment on the matter. Both are market leaders in their respective fields.
Binance and Tether are accused in the US
About Binance, the letter signed by Cynthia Lummis and French Hill points out that the brokerage has a history of ties to illegal activities. Regarding the current complaint, we note that the broker has already frozen several user accounts related to Hamas since the start of the group’s invasion of Israel.
“The fact that Hamas and other terrorist groups were allowed by Binance to open accounts and conduct business, even after public reporting on the matter, clearly demonstrates that Binance could provide material support to entities involved in terrorism under federal legislation, or could be willfully blind. to the fact that you might do it.points out the complaint.
Binance is already being sued by the CFTC and the SEC and faces allegations of international law evasion and securities law violations, among other things.
After the lawsuits, the brokerage began mass layoffs and cut benefits for its employees, while claiming that the regulatory environment had caused a decline in profits.
Concerning the Tether, responsible for the USDT stablecoin, politicians point out that the company has already frozen 32 addresses controlled by Hamas and Russian entities. According to the accusations, Tether also facilitates violations of laws.
Like Binance, Tether has also been sued by the CFTC in the past, the lawsuit related to its reserves.
“We urge the Department of Justice to carefully evaluate the extent to which Binance and Tether provide material support and resources to support terrorism”ends the letter. “To this end, we wholeheartedly support swift action by the Department of Justice against Binance and Tether.”
Tether responds to the accusations
Led by Paolo Ardoino, recently promoted to CEO, Tether quickly responded to the allegations. In a text published on its website, the company asks governments to do this “check the facts about the misinterpretation of data by the mainstream media”.
“We at Tether are proud of the work we do to prevent illegal activity”said Paolo Ardoino on his social networks. “From its inception, Tether has proactively worked with dozens of law enforcement agencies, including the US, Ukraine and Israel.”
“The use of cryptocurrencies by bad actors is a small drop in the vast ocean of illicit activity flowing through the traditional financial sector.”
At Tether, we are proud of the work we do to stop illegal activity.
Since its inception, Tether has proactively worked with dozens of law enforcement agencies, including the US, Ukraine and Israel.Crypto used by malicious actors is responsible for a small drop in the vast ocean of illegal… https://t.co/rmi85a6XE6
— Paolo Ardoino 🍐 (@paoloardoino) October 26, 2023
Regarding one of the articles cited in the letter, Ardoino states that The Wall Street Journal “good actors mislead with false information”.
Until the closing of this report, Binance had not publicly responded to the allegations. The space is available.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
