US lawmakers have called on the US Department of Justice (DOJ) to initiate a criminal investigation into cryptocurrency exchange Binance (BNB) and stablecoin issuer Tether (USDT). This comes in response to a controversial report from the Wall Street Journal (WSJ) alleging that Hamas and its allies have raised significant funds through cryptocurrencies.
In a joint letter signed by Senator Cynthia Lummis and Representative French Hill, the lawmakers express deep concern over reports suggesting that “unregulated crypto intermediaries” outside the United States have allegedly facilitated illegal financial activities, including financing terrorism such as Hamas attacks on Israel.
Lummis and Hill urge the DOJ to promptly make a charging decision regarding Binance, taking into account the extent of its involvement, and to conclude the ongoing investigation into the allegations against Tether for illegal activities.
The lawmakers refer to the WSJ report from October 10, 2023, which revealed that Hamas, the Palestinian Islamic Jihad, and Hezbollah have received cryptocurrency funding since August 2021. They emphasize the need for the DOJ to hold accountable any entities enabling illegal activities. The letter states:
“We firmly believe that it is essential for the Department of Justice to hold bad actors accountable when they are shown to enable illegal activities. In particular, Binance is an unregulated crypto asset exchange domiciled in the Seychelles and Cayman Islands, which has been linked to past illegal activity and is reportedly the subject of an ongoing DOJ investigation.”
On the other hand, Tether, in response to Senator Lummis and Rep. Hill’s claims, issued a statement combating the “misinformation” surrounding the potential misuse of cryptocurrencies. Tether refers to independent investigations by Chainalysis and Elliptic, which found significant errors and faulty attribution techniques in reports, including the WSJ article.
Tether emphasizes its commitment to compliance with regulatory requirements, due diligence, and global cooperation with law enforcement agencies. They highlight their track record of freezing assets related to illegal activities and provide no evidence of violating sanctions laws or the Bank Secrecy Act.
Furthermore, Tether highlights the inherent transparency of blockchain technology and the proactive measures taken by virtual asset service providers to monitor and report potentially illegal activities.
They reiterate their commitment to transparency, compliance, and cooperation with authorities, inviting constructive dialogue and collaboration.
As calls for an investigation by the DOJ surface, the cryptocurrency community awaits further developments and the potential impact on the operations of Binance and Tether.
At present, BNB is trading at $221, representing a 0.9% decline in the last 24 hours. However, it is worth noting that the token has seen significant gains in the past seven and thirty days, amounting to 5.3% and 4.9% respectively.
Disclaimer: This article is intended for informational purposes only and should not be considered as financial or legal advice.
