Congress has approached the Department of Justice to take decisive action against two significant cryptocurrency platforms, Binance and Tether. The accusations relate to their alleged involvement in financing illegal activities. What lies behind these accusations and what could be their consequences for the world of cryptocurrencies?
Recent events on the international stage draw attention to cryptocurrency actions and their potential impact on global finance. In particular, some unregulated crypto-asset brokers might have been linked to financially dubious activities over the past two years.
Congress is intensifying its efforts. In an official letter addressed to Attorney General Merrick Garland, dated October 26, lawmakers expressed deep concern, drawing attention to unregulated crypto-asset brokers that allegedly participated in illegal financial activities. They emphasized how important it is for a few wrong players not to spoil the reputation of the entire industry.
According to Wall Street Journal reports, certain groups received funding through crypto assets. Nevertheless, subsequent investigations questioned the accuracy of this information. Binance, a crypto-asset exchange based in the Seychelles and Cayman Islands, has been previously linked to such illegal activities and is currently under investigation by the Department of Justice. Recent findings suggest that Binance might have knowingly facilitated transactions for entities involved in terrorism and also violated sanction laws and the Bank Secrecy Act.
Tether, the issuer of a stable cryptocurrency, is also of concern. Although its product is used for illegal purposes, Tether allegedly knowingly violates sanction laws and the Bank Secrecy Act. In response to the accusations, Tether released an official statement, highlighting its commitment to transparency and compliance. The company pointed out inaccuracies in the data presented by major media and indicated significant differences between reported and actual amounts related to illegal financing. It also emphasized its strict verification procedures and cooperation with global law enforcement agencies. Further, Tether boasted its track record, which includes freezing a total of $835 million related to illegal activities and active cooperation with 31 law enforcement agencies in 19 jurisdictions.
Will the accusations against Binance and Tether affect the further development of the cryptocurrency market? Only time will tell. One thing is certain: the world of cryptocurrencies remains under close scrutiny by regulators worldwide, and the future of this dynamic industry is a hot topic of discussion.
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