Senators Elizabeth Warren and Chris Van Hollen have requested that the Justice Department probe whether Binance Holdings Ltd. provided misleading information to lawmakers regarding its business operations. In a letter to US Attorney General Merrick Garland, the senators expressed their concern over Binance's potential falsehoods, particularly the claim that its US-based affiliate, Binance.US, operates independently from the global entity. This concern was exacerbated by a 136-page SEC complaint suggesting the two Binance entities were not truly separate.
The senators initially requested information about the relationship between Binance and Binance.US in March, along with various financial data. In response, Binance emphasized the separation of the two companies and its focus on compliance. The responses were intended to support Congress's legislative process. However, the senators believe Binance and Binance.US may have disrupted this crucial investigation by providing false and misleading details.
Patrick Hillmann, Binance’s Chief Strategy Officer, was responsible for the 14-page reply to the March inquiry. The response outlined the company's efforts to expand its compliance program but offered little financial information. Meanwhile, the SEC has alleged that Binance and its CEO Changpeng Zhao violated securities rules, mishandled customer funds, and misled investors. The SEC also claims that the international company and Zhao played a significant role in managing the US-based business and has requested a temporary restraining order to freeze some assets as part of its case.
Senator Warren has underscored the importance of holding Binance accountable for its actions. Speaking to Bloomberg Television, she emphasized that lying to Congress is a criminal offense and expressed her hope that the Justice Department would investigate the matter.
