Lawmakers Ask DOJ to Investigate Binance and Tether’s Activities

Amid a series of controversies surrounding Binance, the Department of Justice (DOJ) is being urged to consider criminal charges against the cryptocurrency giant. Furthermore, there are calls for a deeper probe into Tether’s potential illicit financial activities.

U.S. lawmakers have called on Attorney General Merrick Garland to take decisive action against cryptocurrency giants Binance and Tether. In a recent letter, they urged Garland “to reach a charging decision on Binance that reflects their level of culpability and expeditiously conclude your investigations into ongoing illicit activities involving Tether.”

The move comes amid concerns over the potential misuse of these platforms to fund terrorist activities targeting Israel. With the rise in cryptocurrency’s popularity, the call for stricter oversight and accountability in the sector has become more pressing.

Casa CEO Voices Alarm Over Binance’s Recent Activities

Amid a turbulent period for many cryptocurrency firms, Nick Neuman, the CEO of self-custody firm Casa, has voiced his concerns regarding Binance, one of the world’s leading cryptocurrency exchanges.

In a recent blog post, Neuman referred to last year’s bankruptcy of companies like FTX and Celsius and mentioned how Casa was swift in transferring user funds to their secure vaults.

Drawing attention to a series of alarming reports related to Binance, Neuman provided a timeline of recent events:

  • Feb 13: Crypto firm Paxos discontinues issuing Binance’s stablecoin, BUSD.
  • May 23: According to insiders and a report by Reuters, Binance allegedly mixed customer funds with the company’s own revenue.
  • June 5: The SEC files 13 charges against Binance entities and its CEO, Changpeng Zhao (CZ).
  • June 9: Various banks sever Binance’s access to the US banking system.
  • June 16: Binance ceases operations in the Netherlands and comes under investigation in France.
  • Oct 10: Reports emerge of Binance CEO, Changpeng Zhao, and other top figures from the exchange possibly facing indictments in Brazil, as per Bloomberg.
  • Oct 17: Binance’s US counterpart stops direct US dollar withdrawals, as reported by Reuters.
  • Oct 19: CoinDesk reveals that FTX utilized billions in customer funds to repurchase a stake in Binance.

Neuman emphasized the importance of self-custody, stating, “It’s easy to avoid being caught in third-party chaos — take self-custody of your assets. That way, you’re always in control.” This sentiment underscores the growing unease surrounding centralized exchanges and reinforces the importance of individuals maintaining control over their digital assets.

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