Senator Lummis calls for a thorough examination of Binance and Tether for alleged illicit financial activities, highlighting concerns in cryptocurrencies. The allegations against Binance include facilitating the financing of terrorism, prompting calls for action from US and Israeli authorities. Cryptocurrency advocates like Nick Neuman emphasize self-custody to avoid potential risks associated with exchanges like Binance.
Gray areas in regulatory frameworks around cryptocurrencies often open doors to illicit activities. This concern has caused Senator Cynthia “Crypto Queen” Lummis to act, expressing her concern about the role of cryptocurrencies in illicit finance, and emphasizing that the problem lies with bad actors and not the technology itself.
On October 26, the senator posted the following on X:
“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.”
Differentiating between Cryptocurrencies and Bad Actors
Senator Lummis, known for her pro-crypto stance, has highlighted the importance of differentiating between cryptocurrencies and individuals or entities that use them for illicit purposes. In her letter, Lummis points to reports suggesting that Binance and Tether could have served as intermediaries for Hamas, in addition to engaging in other illicit activities.
Lummis has been a vocal proponent of cryptocurrencies in the United States Senate, arguing that blockchain technology and cryptocurrencies have the potential to revolutionize the financial system. However, she has also emphasized the need for clear and fair regulation that enables innovation while protecting consumers and maintaining the integrity of the financial system.
The senator has called on the Department of Justice to act quickly to conclude its investigation into Binance and Tether. She argues that it is crucial to address any illicit activity related to cryptocurrencies to protect consumers and preserve trust in the crypto ecosystem.
US Department of Justice Must File Charges Against Binance
Recent reports suggest that unregulated cryptoasset brokers, particularly Binance, have facilitated significant illicit financial activities. More importantly, support terrorist financing for Hamas during the recent attacks on Israel.
This is not the first time Binance has faced such accusations. Reports have historically highlighted links between Binance and illicit activities, attracting the attention of authorities and regulators. On October 16, 2023, Israeli law enforcement took action by closing over 100 Binance accounts associated with Hamas. Additionally, a May 2023 report revealed that Israeli law enforcement seized more than 190 Binance accounts linked to Islamic terrorism between 2021 and 2023:
“The fact that Binance allowed Hamas and other terrorist groups to open accounts and conduct business, even after reporting the issue, clearly shows that Binance could be providing material support to entities involved in terrorism under federal law.”
The senator’s letter highlights the importance of responsible innovation in the United States financial markets, driven by crypto assets and distributed ledger technology. However, when a handful of bad actors use these platforms for nefarious purposes, it tarnishes the reputation of the entire crypto industry.
Lummis continues to be a key figure in the debate over cryptocurrency regulation in the United States. Her recent action highlights its commitment to a balanced approach that seeks to eradicate illicit activities while encouraging innovation in the crypto space.
The crypto community will be attentive to how this situation develops and what the impact will be on Binance, Tether and the crypto ecosystem in general.
By Leonardo Pérez
