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US Lawmakers Call for Investigation into Binance and Tether

Key points:

  • Two American lawmakers, Cynthia Lummis and French Hill, recently sent a letter to the DOJ, calling for a thorough investigation into Binance and Tether.
  • Binance and Tether have both come under criticism for allegations of illicit activities.
  • This news comes after the release of Elliptic’s report debunking the Wall Street Journal’s claims that Hamas had ‘raised millions in crypto’.

Recently, two American political figures, Senator Cynthia Lummis and Representative French Hill, sent a letter to the United States Department of Justice (DOJ). Their request is clear: evaluate the potential role of Binance and Tether in any activities related to Hamas financing.

This move comes amid attacks against Israel and allegations that these two cryptocurrency giants might be involved in illicit activities. The lawmakers specifically called upon Attorney General Merrick Garland to ‘make a charging decision against Binance that reflects their level of guilt and promptly conclude your investigations into ongoing illicit activities involving Tether.’

We strongly support swift action by the Department of Justice against Binance and Tether to choke off terrorist financing sources that are currently targeting Israel.”

said the lawmakers.

The two lawmakers also described Binance as an unregulated cryptocurrency exchange based in Seychelles and the Cayman Islands, and one that has always been linked to illicit activities.

Binance and Tether targeted by regulators

Binance and Tether are no strangers to controversies. In fact, the Commodity Futures Trading Commission (CFTC) has previously sued Binance for allegations of non-compliance.

On the other hand, Tether was fined by the CFTC in 2021 for issues related to the backing of its USDT stablecoin. Recently, the stablecoin issuer also froze multiple addresses associated with entities linked to Hamas and Russia.

However, the two lawmakers emphasized that blockchain technology and cryptocurrencies have the potential to drive responsible innovation. They urged the DOJ to take swift action, but while considering the positive potential of these technologies.

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