Ahmed Ali Two prominent members of the United States Congress have formally requested the U.S. Department of Justice (DOJ) to evaluate the possibility of initiating criminal proceedings against Binance and Tether, asserting that these cryptocurrency platforms have facilitated financial support for the terrorist group Hamas. “We strongly encourage the Department of Justice to rigorously assess whether Binance and Tether are engaged in providing material aid to terrorist activities in contravention of existing sanctions regulations and the Bank Secrecy Act,” emphasized the congressional representatives.
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Congressional Concerns Regarding Binance and Tether
The office of U.S. Senator Cynthia Lummis (R-WY) disclosed on Thursday that both Senator Lummis and U.S. Representative French Hill (R-AR) have submitted a written appeal to U.S. Attorney General Merrick Garland. Their appeal insists on the DOJ’s prompt examination of Binance and Tether, stating that these platforms not only have helped fund Hamas but also have a track record of tolerating unlawful transactions.
Serving as a member of the Senate Banking Committee, Senator Lummis articulated the urgency for federal oversight to act decisively against malfeasance within the cryptocurrency sector, following allegations that Hamas utilized cryptocurrencies for financing hostilities in Israel. She made her stance clear through a post on social media platform X:
“In matters of illicit finance, cryptocurrencies are not the villains—malicious actors are. I have dispatched a letter urging the DOJ to finalize its inquiry and contemplate criminal charges against Binance and Tether, following revelations that they acted as conduits for Hamas and participated in unlawful activities.”
The lawmakers’ letter opens with an expression of grave concern about recent reports that suggest centralized cryptocurrency entities, situated outside of U.S. jurisdiction, have been enablers of substantial illicit financing activities over the past two years, including material support to the detestable actions of Hamas. “We call on you and the Department of Justice to arrive at a prosecutorial decision regarding Binance that is commensurate with their culpability and promptly bring to a close your ongoing investigations into illicit conduct associated with Tether,” the letter further elaborates.
The correspondence references an October 10 Wall Street Journal article that claims organizations like Hamas, Palestinian Islamic Jihad, and Hezbollah have been recipients of cryptocurrency funding since August 2021. While the lawmakers acknowledged that the funding levels reported might not be accurate, they asserted, “It remains crucial for the Department of Justice to hold culpable parties accountable if evidence shows their involvement in enabling unlawful activities.”
Elliptic, a blockchain analytics firm, clarified this week that there is no substantiated evidence to confirm significant volumes of cryptocurrency donations to Hamas. The firm further noted that its data had been misconstrued.
The legislators also describe Binance as an unregulated entity, based in Seychelles and the Cayman Islands, that has been historically implicated in illegal activities. They noted that Binance is allegedly under active investigation by the Department of Justice.
Additionally, Lummis and Hill contended, “It is widely acknowledged that Tether is deliberately contravening applicable sanctions laws and the Bank Secrecy Act by neglecting to perform adequate due diligence on its customers, despite being cognizant that its services are utilized to abet terrorism and other illegal actions.”
The congressional representatives concluded by reiterating their appeal to the DOJ. “We strongly endorse prompt action by the Department of Justice to sever the financial channels that terrorists targeting Israel currently exploit through Binance and Tether,” they stated.
What are your thoughts on the congressional request for the DOJ to weigh criminal charges against Binance and Tether? Feel free to share your perspectives in the comments section below.
Frequently Asked Questions (FAQs) about U.S. Department of Justice and Binance Tether Investigation
What is the primary focus of the congressional appeal to the U.S. Department of Justice?
The main focus of the congressional appeal is to urge the U.S. Department of Justice (DOJ) to evaluate the possibility of initiating criminal proceedings against cryptocurrency platforms Binance and Tether. The lawmakers allege that these platforms have been facilitating financial support for the terrorist group Hamas and have a history of tolerating illegal activities.
Who are the lawmakers involved in making this appeal?
U.S. Senator Cynthia Lummis (R-WY) and U.S. Representative French Hill (R-AR) are the lawmakers who have sent the formal request to U.S. Attorney General Merrick Garland. Senator Lummis serves on the Senate Banking Committee, and Representative Hill chairs the House Financial Services Committee’s Subcommittee on Digital Assets.
What evidence do the lawmakers cite in their appeal?
The lawmakers reference an article published by the Wall Street Journal on October 10, which claims that organizations like Hamas, Palestinian Islamic Jihad, and Hezbollah have received cryptocurrency funding since August 2021. However, they acknowledge that the level of funding reported may not be accurate.
Has any third party contradicted the lawmakers’ claims?
Yes, blockchain analytics firm Elliptic has clarified that there is no substantiated evidence to confirm that Hamas has received significant volumes of cryptocurrency donations. The firm notes that its data has been misinterpreted.
What specific laws are cited in the lawmakers’ appeal?
The lawmakers emphasize that Binance and Tether could be in violation of existing U.S. sanctions regulations and the Bank Secrecy Act, which are aimed at preventing illicit financial activities, including support for terrorism.
What are the lawmakers’ affiliations and roles in the government?
Senator Cynthia Lummis is a Republican from Wyoming and serves as a member of the Senate Banking Committee. Representative French Hill is a Republican from Arkansas and serves as the chair of the House Financial Services Committee’s Subcommittee on Digital Assets.
What actions do the lawmakers suggest the DOJ should take?
The lawmakers strongly encourage the Department of Justice to arrive at a prosecutorial decision regarding Binance that is commensurate with their culpability and to promptly conclude ongoing investigations into illicit conduct associated with Tether.
What are the alleged locations of Binance and Tether?
Binance is described as an unregulated crypto platform based in Seychelles and the Cayman Islands. The locations of Tether are not explicitly mentioned in the text.
Are Binance and Tether currently under any investigation?
The text states that Binance is purportedly the subject of a current Department of Justice investigation. The status of any investigation into Tether is not explicitly mentioned.
What is the lawmakers’ final call to action?
The lawmakers conclude by reiterating their appeal to the DOJ, endorsing prompt action to sever the financial channels that terrorists targeting Israel currently exploit through Binance and Tether.
More about U.S. Department of Justice and Binance Tether Investigation
- U.S. Department of Justice Official Website
- Wall Street Journal Article on Cryptocurrency and Terrorism
- Senate Banking Committee Members
- House Financial Services Committee’s Subcommittee on Digital Assets
- Elliptic’s Official Statement
- Bank Secrecy Act Overview
- U.S. Sanctions Regulations
- Senator Cynthia Lummis’ Official Twitter
- Representative French Hill’s Official Twitter
10 comments
Wow, this is big news! If the DOJ actually goes after Binance and Tether, what does that mean for the rest of the crypto market? Anyone else concerned here?
kinda saw this coming, these big platforms have always been in the spotlight. But what’s the evidence? just some articles and lawmakers talking?
Elliptic says there’s no evidence. So is this just political posturing then? very curious to see how this plays out.
I’d be curious to see how international law plays into this. Binance is based in Seychelles and Cayman Islands, so how does US jurisdiction work here?
wow lawmakers finally waking up to crypto? Its about time they crack down on bad actors, but hope they don’t stifle innovation.
As a mom who’s trying to invest for my kid’s future, this kinda stuff scares me. Are any platforms safe?
Ive got a bit of my retirement in crypto, news like this really makes me second guess that decision.
And this is why we need to move to fully decentralized platforms. No more relying on these centralized entities!
Before jumping to conclusions, lets wait for due process. This could be a complicated issue, and sensational headlines aren’t helping.
Very detailed article. But let’s not forget innocent until proven guilty, right? I mean, these are just allegations for now.