Congress has urged The Department of Justice (DOJ) will take decisive action against major crypto platforms Binance and Tether over allegations of involvement in illicit financial activities. This call to action comes in light of reports suggesting that some unregulated crypto asset brokers may have facilitated significant illicit financial activities over the past two years.
Congress increases pressure
In a formal letter to Attorney General Merrick Garland dated October 26, lawmakers expressed deep concern about unregulated crypto asset brokers who have allegedly played a role in illicit financial activities.
Lawmakers have stressed the need to ensure that a few bad actors do not tarnish the reputation of the entire industry.
The Wall Street Journal reported that certain groups had received funding through crypto assets, although subsequent investigations have questioned the accuracy of these figures. Binance, a crypto asset exchange based in the Seychelles and the Cayman Islands, has been linked to this type of illicit activity in the past and is currently under investigation by the Department of Justice.
Recent findings indicate that Binance may have deliberately facilitated transactions for entities involved in terrorism and may have violated sanctions laws and the Bank Secrecy Act.
Additionally, Tether, an issuer of payment stablecoins, is a cause for concern because it is reportedly knowingly violating sanctions laws and the Bank Secrecy Act, even though its product is used for illicit purposes.
Tether responds to accusations
In an official statement, Tether responded to the allegations and emphasized its commitment to transparency and compliance.
The statement began by addressing misinformation in recent reports, noting that independent investigations by Chainalysis and Elliptic have revealed inaccuracies in data presented by mainstream media outlets. Tether also noted the large discrepancy between reported figures related to illicit funds and actual figures.
By highlighting its strict verification processes, Tether reinforced its commitment to regulatory compliance and collaboration with global law enforcement agencies.
The statement details Tether’s track record, which includes freezing a cumulative total of $835 million linked to illicit activities and proactively collaborating with 31 law enforcement agencies in 19 jurisdictions.
