U.S. Lawmakers Push for “Swift” DOJ Action Against Binance

U.S. lawmakers are pushing for swift DOJ action against Binance and expedited investigations into Tether.

by Brian Danga. Fact checked by: Ciaran Lawler, Editor: Nazar Kuzmyn

Published: October 27, 2023 │ 1:45 PM GMT

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U.S. lawmakers have urged the DOJ to act against Binance.
The call follows reports that the terrorists might have moved funds through the exchange.
The lawmakers also called for expedited investigations into Tether.

Binance, the world’s largest crypto exchange by trading volume, has been caught in the middle of the war against crypto-funded terrorism.

Following reports that the Islamic group Hamas raised millions in crypto and used various platforms to move the funds for its operations that led to a direct attack on Israel, two U.S. lawmakers have called on the Department of Justice (DOJ) to take “swift” action against Binance.

DOJ Urged to Act Against Binance

In a letter addressed to U.S. Attorney General Merrick Garland on October 26, Senator Cynthia Lummis and Representative French Hill asked the DOJ to arrive at a “charging decision on Binance” and “expeditiously conclude” investigations into Tether’s alleged involvement in illicit activities.

When it comes to illicit finance, crypto is not the enemy – bad actors are.

I sent a letter asking DOJ to finish its investigation and consider criminal charges against Binance and Tether after reports they served as intermediaries for Hamas and engaged in illicit activities. pic.twitter.com/M3KGNFkpWc
— Senator Cynthia Lummis (@SenLummis) October 26, 2023

Notably, the lawmakers alleged that Binance and Tether are actively providing material support and resources to enable crypto-funded terrorism through circumvention of applicable sanctions laws and violations of the Bank Secrecy Act.

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“While some reports claim Binance is now cooperating with Israeli law enforcement, this is immaterial to criminal culpability because Binance is only doing so after knowingly allowing its exchange to be used by terrorist organizations, and only after they have been caught,” the letter read.

On Tether’s part, the lawmakers claimed that the stablecoin issuer has failed to conduct adequate customer due diligence and screenings despite being aware that extremist groups are leveraging its product to facilitate terrorism and other illicit activities.

The October 26 letter follows another one by a bipartisan group, pressing the government to address crypto-funded terrorism concerns.

The War Against Crypto-Funded Terrorism

On October 18, 102 U.S. lawmakers led by Senator Elizabeth Warren wrote to President Biden’s administration and urged the government to combat the use of crypto in funding terrorism.