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March 30, 2023

Binance Addresses Accusations From Elizabeth Warren and Other US Senators in New Open Letter

By Rhodilee Jean Dolor

Binance responds to the letter from US senators alleging that the world’s largest crypto exchange by trading volume is a hotbed of illegal financial activities.

In a letter dated March 1st addressed to Binance CEO Changpeng Zhao and Binance.US President Brian Shroder, Senators Elizabeth Warren, Chris Van Hollen and Roger Marshall said that the platform facilitated over $10 billion in payments to criminals and sanctions evaders.

Citing media reports, the legislators said that Binance and its related entities also purposely evaded regulators and hid basic financial information.

“Your actions have called into question the legitimacy of your business and the safety of your customers’ assets and raised concerns about the potential impact of these activities on the stability of the crypto market and the broader financial system.”

In an open letter dated March 28th, Binance says that the senators based their accusations on articles that have either incorrect or incomplete information about the platform.

The firm says it considers regulation as the best form of user protection and prioritizes local regulatory compliance.

“Consistent with this commitment to regulatory compliance—and contrary to public reporting based on outdated and incomplete information—Binance decided to launch a separate US entity, Binance.US, in 2019, to establish a compliant platform for US users.”

Binance says it is committed to providing a safe and transparent platform.

“Binance has shared its cold and hot wallet addresses, as well as published Merkel tree proof of reserves, proof of collateral for B-Tokens, and its six commitments to a healthy exchange. Binance also publishes information regarding the processes for burning its native token BNB.

Binance has also established user security measures, including the Margin Insurance Fund, to protect users from losses when their cross/isolated margin equity is less than zero or when a user is unable to repay their debts.”

The firm also assures that its users will have no problem withdrawing their funds.

Binance carefully safeguards its customers’ assets. Importantly, Binance holds a one-to-one reserve of users’ assets. This means that users can withdraw 100 percent of their assets from the platform at any time.”

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