U.S. Senator Urges Treasury and Justice Departments to Investigate Binance's Relationship with Trump

BlockBeats News, May 9th, according to Bloomberg, a group of Democratic U.S. senators (including Maryland Senator Chris Van Hollen and Massachusetts Senator Elizabeth Warren) sent a joint letter to the Secretary of the Treasury and the Attorney General requesting an investigation into the relationship between Binance and the Trump family's digital asset project. The letter pointed out that the Abu Dhabi investment firm MXG completed a $1 billion investment in Binance in March through a USD-backed stablecoin controlled by the Trump family, raising concerns about compliance risks. In 2023, Binance pleaded guilty to violating anti-money laundering regulations, and CZ has served four months in prison.

On May 9th, Democratic senators just invoked the "Preventing Current Government Officials from Profiting from Crypto Projects" clause to temporarily delay the passage of the "Stablecoin Act." The joint letter requested the Treasury and Justice Departments to provide three explanations by May 21st: the progress of Binance's compliance agreement, the timetable for exiting the U.S. market, and whether there have been discussions about pardoning CZ. According to The Wall Street Journal, representatives of the Trump family had negotiated investments in Binance.US (which CZ had previously denied). The letter stated: "The idea that the current administration may allow Binance to continue operating and expanding in the U.S. is deeply concerning, especially considering the company's repeated disregard for federal laws and regulations designed to protect the safety of Americans."