Binance And Tether Now Face Legal Scrutiny In The US
United States lawmakers are intensifying legal pressure on cryptocurrency giants Binance and Tether, calling upon the Department of Justice to explore potential criminal charges. During a hearing, Lummis emphasized the need to regulate “unregulated, centralized” foreign crypto firms that contribute to “significant terrorism financing.” In the letter, the lawmakers urged the Department of Justice to act swiftly against Binance and Tether, particularly in light of recent terrorist attacks in Israel.
The letter requested Attorney General Merrick Garland to make a charging decision regarding Binance’s level of culpability and to expedite investigations into illicit activities involving Tether. Both Binance and Tether are prominent figures in the cryptocurrency and blockchain space. The legal situation escalated when the Securities and Exchange Commission (SEC) filed a lawsuit against Binance.US, its global counterpart Binance, and founder Changpeng “CZ” Zhao, alleging unregistered securities platform operations. Tether achieved a legal victory on August 4 when a class action suit concerning its USDT stablecoin was dismissed. The case, initiated in December 2021, had raised concerns about USDT’s backing based on findings from the New York Attorney General (NYAG) and the Commodities Futures Trading Commission (CFTC), as well as Tether’s varying statements about its reserve makeup.
