The CEO of Binance US was reached out by a Subcommittee chairman for producing various documents — in an attempt to help review the measures taken to protect investors.
Brian Schroeder, president, and CEO of Binance USA, received a federal letter demanding the immediate disclosure of official documents showing the exchange’s compliance with various security protocols for investors. This request was made by the chairman of the subcommittee of the Committee on Control and Government Reform of the House of Representatives of the United States Congress.
In a letter to Schroeder, Congressman Raja Krishnamurthy of the Subcommittee on Economic and Consumer Policy emphasized the insufficient involvement of cryptocurrency exchanges in helping the US government prevent financial fraud and protect investors:
Krishnamurthy was skeptical of the vetting process behind listing tokens on crypto exchanges, which ultimately increases the risks for the investors. The subcommittee contacted Binance US, which is a subsidiary of the largest cryptocurrency exchange Binance, to obtain various documents to help investigate the depth of the above issues.
Binance US will need to produce all requested documents from the beginning and term of fewer than two weeks of September Sept. 12, 2022,
Speaking on behalf of the US Congress, Krishnamoorthi reiterated that crypto exchanges must make effective measures to ensure the security of investors, “By implementing audit policies, requiring certain disclosures, delisting, and adopting other safety mechanisms.”
In addition to the documents, Shroder was asked to answer questions showing the tools and mechanisms implemented by the exchange to reduce risks, fraud, and scams.
A recent survey revealed that 46% of adult crypto users in the United States witnessed a loss in investments amid the ongoing crypto winter.
A vast majority of the respondents tried investing in cryptocurrency while looking for a “different way to invest,” and thought it was a “good way to make money.”
In addition to the documents, Schroader was asked to answer the questions showing the tools and instructions implemented by the exchange to reduce the risks, frauds and frauds.
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