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Two U.S. elected officials wrote to the Department of Justice, calling for a concluded investigation on Binance and Tether that could lead to litigation against the pair of crypto heavyweights.
Senator Cynthia Lummis, who sits on the Senate Banking Committee, cited an Oct. 10 Wall Street Journal (WSJ) report claiming that Hamas and its affiliate raised millions through cryptocurrencies.&nbsp;
The article in question and subsequent reports of the same ilk have since been refuted by blockchain data companies like <a href="https://crypto.news/elliptic-debunks-wsj-article-on-hamas-crypto-fundraising/" data-type="link" data-id="https://crypto.news/elliptic-debunks-wsj-article-on-hamas-crypto-fundraising/" rel="noopener noreferrer nofollow">Elliptic</a>, per crypto.news.
Lummis’ letter noted the likelihood of inaccuracies in WSJ reporting but insisted that the Justice Department exercise judicial might to counter crypto terror financing.&nbsp;
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 Though subsequent reports have highlighted that the level of funding reported in the article is likely not accurate we believe it is nonetheless imperative that the Department of Justice hold bad actors accountable if they are shown to facilitate illicit activity. <cite>Senator Cynthia Lummis</cite>
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Read more: <a href="https://crypto.news/elliptic-debunks-wsj-article-on-hamas-crypto-fundraising/" rel="noopener noreferrer nofollow"> Elliptic debunks WSJ article on Hamas crypto fundraising </a>
In addition to finalizing probes into Binance and <a href="https://crypto.news/tether-has-frozen-32-addresses-linked/" rel="noopener noreferrer nofollow">Tether</a>, Senator Lummis argued for swift prosecution of these two major crypto industry stakeholders. Lummis noted that Israeli authorities <a href="https://crypto.news/binance-reportedly-blocked-over-100-hamas-related-accounts/" rel="noopener noreferrer nofollow">ordered</a> the closure of 100 Binance accounts linked to illicit wealth, citing the need for guardrails against money laundering.&nbsp;
Representative French Hill, Chair of the House Financial Services Subcommittee on Digital Assets, co-signed the letter.
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 When it comes to illicit finance, crypto is not the enemy – bad actors are. I sent a letter asking DOJ to finish its investigation and consider criminal charges against Binance and Tether after reports they served as intermediaries for Hamas and engaged in illicit activities. <a href="https://t.co/M3KGNFkpWc" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/M3KGNFkpWc</a>— Senator Cynthia Lummis (@SenLummis) <a href="https://twitter.com/SenLummis/status/1717585513836691606?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">October 26, 2023</a>
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This is the latest in a flurry of requests from U.S. policymakers after multiple WSJ news pieces reportedly misinterpreted on-chain data and overstated crypto activity attributed to Hamas operatives.
Senator Elizabeth Warren, famed for her anti-crypto rhetoric, assembled 20 percent of Congress to demand additional restrictions on digital assets and operators facilitating unlaw transactions. Warren also cited the contentious WSJ article linking crypto with nearly $100 million in illicit wealth funneled to terror groups.&nbsp;The Treasury Department <a href="https://crypto.news/us-says-crypto-mixers-threaten-national-security-amid-middle-east-conflict/" rel="noopener noreferrer nofollow">proposed</a> new rules cracking down on crypto mixers shortly after.
Binance is currently in a <a href="https://crypto.news/binance-and-changpeng-zhao-ask-court-to-dismiss-sec-suit/" rel="noopener noreferrer nofollow">legal duel</a> with the Securities and Exchange Commission and Tether plans to <a href="https://crypto.news/tether-to-start-publishing-data-on-usdt-reserves-in-real-time/" rel="noopener noreferrer nofollow">publish</a> real-time reserve data on its stablecoin USDT in a bid to bolster industry confidence.
You might also like: <a href="https://crypto.news/unveiling-the-shadows-fincens-crackdown-on-crypto-mixers/" rel="noopener noreferrer nofollow"> Unveiling the shadows: FinCEN’s crackdown on crypto mixers </a>

DoJ asked to mull criminal charges against Binance and Tether

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