US Lawmakers Want to Brutally Kick Binance & Tether Bosses into Prison

Key Takeaways:

• Senator Cynthia Lummis & Congressman French Hill want legal action against Binance and Tether.
• The lawmakers accuse the two crypto firms of offering services to terror groups such as Hamas.
• Tether has put out a strong-worded statement rubbishing the accusations.

YEREVAN (CoinChapter.com) — Two US lawmakers have asked the Department of Justice (DOJ) to bring charges against prominent cryptocurrency companies, Binance (BNB) and Tether (USDT). 

Senator Cynthia Lummis and Congressman French Hill wrote a letter to the DOJ asking for a probe. Both lawmakers are otherwise crypto-friendly. However, they want an investigation in connection with allegations that the two crypto firms facilitated illicit financial activities. 

Their appeal to Attorney General Merrick Garland cites recent media reports suggesting that Binance and Tether played a role in enabling crypto donations to Palestinian terror outfit Hamas and other militant groups.

“Binance has historically been linked to illicit activity…The fact that Hamas and other terrorist groups have been permitted by Binance to open accounts and conduct business clearly shows that Binance could be providing material support to entities engaged in terrorism under Federal law,” 

the letter alleges. 

While reiterating her support for crypto, Senator Lummis wants the DOJ to file criminal charges against Binance and Tether. 

Tether denies charges labeled by US Lawmakers

Meanwhile, Tether (USDT) responded to the reports of its alleged involvement in allowing bad actors to misuse cryptocurrencies. 

The organization has faced criticism for reportedly not promptly freezing accounts under the control of Hamas. These actions, according to the letter sent by the US Lawmakers, contribute to violations of sanctions.

Paolo Ardoino, Tether’s incoming CEO, slammed the Wall Street Journal for printing what he called a “deceitful article” about the company. 

Arduino also pointed out how bad actors use traditional financial systems for illicit activities more often than crypto. 

Meanwhile, the company’s official statement highlighted the steps it has taken to curb illegal activities. 

“We have proactively collaborated with 31 law enforcement agencies across 19 jurisdictions to curb malicious activities. In alignment with the NBCTF in Israel, we have frozen 32 addresses associated with illicit activities, securing a total of $873,118,” 

the statement reads. 

These accusations emerged in the wake of reports that Binance and Tether were collaborating with Israeli authorities to seize crypto assets belonging to Hamas. 

The news on the possible subsequent crackdown on Binance forced the BNB to tank over 3%. According to TradingView, it fell from $227 to under $220 before stabilizing again. At the time of writing, the altcoin exchanges hands at $225, some 68% below its all-time high of $690.