Trump's Justice Department Under Fire for Uncooperative Response to Elizabeth Warren's Binance Investigation
Senator Elizabeth Warren (D-MA) has expressed her dissatisfaction with the Department of Justice's (DOJ) response to her questions regarding Binance, the world's largest crypto exchange. In a letter penned on Wednesday, Warren implored the DOJ to provide answers, citing a recent Bloomberg report about Binance's discussions to end its obligation to cooperate with an outside compliance monitor.
The major term of Binance's 2023 criminal settlement was that it would work with such a monitor for five years. The U.S. Treasury Department reported its cooperation with an external compliance monitor overseeing Binance in June 2023, announcing this partnership and providing information about the monitor's role in enhancing Binance's regulatory compliance and anti-money laundering controls.
Warren's letter comes after she asked Attorney General Pam Bondi whether the DOJ has been enforcing the terms of Binance's settlement agreement, but received no update on the status. The senator is seeking details about Binance's interactions with the Trump administration, including conversations about a potential pardon for exchange co-founder Changpeng Zhao.
In an exclusive interview in May, Zhao revealed he is actively seeking a pardon from the Trump administration. Zhao pleaded guilty to criminal money laundering charges in 2023, which barred him for life from serving again as a Binance executive. The senator also asked Bondi whether DOJ officials have had conversations with Binance about World Liberty Financial, a crypto platform associated with the Trump family.
The DOJ did not engage with Warren's question about conversations with Binance regarding World Liberty Financial, nor did it respond to Warren's questions about a potential Zhao pardon in its recent letter. The senator's concerns about the Department of Justice's lack of cooperation with previous inquiries into Binance's compliance with its 2023 settlement have been heightened by Binance's reported attempts to end its obligation to work with the compliance monitor.
The U.S. government's 2023 settlement with Binance highlighted the exchange's cooperation with an external compliance monitor as a crucial term. The settlement was for Binance's violations of U.S. anti-money laundering and sanctions laws. Binance's presence in the United States has been limited for years, but the Trump administration recently opened the door for foreign crypto exchanges like Binance to legally serve U.S. customers for the first time, via a Commodity Futures Trading Commission (CFTC) registration framework.
Warren's letter was also signed by Sen. Mazie Hirono (D-HI) and Sen. Richard Blumenthal (D-CT). The senators' push for transparency underscores the importance of ensuring that Binance, as the world's largest crypto exchange, adheres to U.S. laws and regulations to protect American investors and prevent illicit activities.
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