Crypto: Criminal proceedings required against Binance and Tether

Hamas’ supposed financing of terrorism via cryptos continues to spark. These threaten to set the crypto firm Binance ablaze, which is already going through a difficult period from a financial point of view. There are also risks to Tether, the issuer of USDT. These two crypto companies are being singled out for their alleged links to Hamas.

Two American parliamentarians on the trail of Binance and Tether

Senator Cynthia Lummis and Representative French Hill requested this Saturday, October 28, the opening of criminal proceedings against Binance and Tether. They addressed their request to the US Department of Justice.

On the grounds of this request, allegations that these two leading crypto firms helped finance the terrorist organization Hamas. These parliamentarians particularly suspect Binance and Tether of having provided material support for terrorism.

The implementation of this support consisted, according to them, in possible violations of the applicable sanctions laws. These offenses would also have concerned the law on banking secrecy known as the Bank Secrecy Act.

“We urge the Department of Justice to carefully evaluate the extent to which Binance and Tether provide material support and resources to support terrorism through violations of applicable sanctions laws and the Bank Secrecy Act”the lawmakers emphasized in a joint statement.

Criminal proceedings in sight for Binance and Tether in the USA

Lawsuits to discourage bad crypto actor operations?

In their joint statement, Cynthia Lummis and French Hill raised concerns related to crypto intermediation. Particularly, that implemented by unregulated intermediaries, centralized and above all located outside the American territory.

To support their arguments, they cite journalistic sources reporting crypto financing for the benefit of terrorist groups. Information whose relevance they doubt, but which does not exclude holding bad actors responsible, if it is proven.

According to them, the crypto firm Binance particularly falls into this category because it is not regulated. Not to mention that it is based in the Seychelles and the Cayman Islands, having historical links to illicit activities.

As for the Tether firm, it is mainly accused of having knowingly facilitated violations of the laws on applicable sanctions, and of the Bank Secrecy Act. This, by not carrying out due diligence on customers, even though it was aware of the potential use of its product for illicit activities. It now remains to be seen whether American justice will respond favorably…

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