- The parent company previously denied any ties to the U.S. subsidiary
- Senators Warren and Van Hollen point out that this was a deliberate lie
- They are calling on the DOJ to investigate and take appropriate action
Senator Elizabeth Warren and her colleague Chris Van Hollen have called on the DOJ to investigate Binance’s statements to Congress. In early March, members of the management of the exchange, as well as its U.S. division, completely denied any ties between the two companies.
The letter was published by Bloomberg. Apparently, Senator Warren sent it to Attorney General Merrick Garland on Wednesday, June 7. In it, the politician stresses the importance of potential misconduct by the leadership of the two companies.
This is about Binance and Binance.US’s response to lawmakers’ call to clarify business practices between the global platform and its affiliate. He followed that proceeding.
Senator Warren believes that top management lied to Congress and also undermined the legislative process in developing an industry regulatory framework. And this is “very serious,” as the politician stated.
It is interesting that neither Zhao nor most of the members of Binance’s management team are U.S. citizens. It is not clear what the potential sanctions from the Ministry of Justice could be in such a case.
But it is possible that they will be, since the case against the exchange is extremely high-profile.. Recall that in its lawsuit against the exchange, the SEC said that both the global and U.S. platforms were funneling client money into Zhao’s funds.
He himself urged employees to keep quiet because their words could be used in court. Especially since some of the internal correspondence has already been leaked.