US Congressman to inspect all Binance US consumer safety files

A Subcommittee chairman reached out to the CEO of Binance US for documentation to assess investor protections.
US Congressman to inspect all Binance US consumer safety files
US Congressman to inspect all Binance US consumer safety files

An urgent request for official paperwork demonstrating the exchange’s compliance with several investor-centric safety protocols was made in a letter to Brian Shroder, president and CEO of Binance US. The US House Committee on Oversight and Government Reform’s subcommittee chairman made the request.

Congressman Raja Krishnamoorthi of the Subcommittee on Economic and Consumer Policy emphasized in the letter to Shroder the absence of support from cryptocurrency exchanges in assisting the US government in reducing financial fraud and safeguarding investors, stating:

“I am concerned by the rapid growth of fraud and consumer abuse. I am also concerned by the apparent lack of action by cryptocurrency exchanges to protect consumers conducting transactions through their platforms.”

Krishnamoorthi expressed doubt about the verification method used to list tokens on cryptocurrency exchanges, which ultimately raises the risks for investors. The Subcommittee requested different papers from Binance US, a subsidiary of the largest cryptocurrency exchange Binance, in an effort to assess the scope of their previously indicated concerns.

A deadline of fewer than two weeks, on September 12, 2022, has been issued to Binance US to deliver all requested records dating back to the start of its operations.

Snippet of the letter with document checklist for Binance US. Source:

Krishnamoorthi reaffirmed in his remarks on behalf of the US Congress that crypto exchanges must take proactive steps to safeguard investor safety “By enacting audit policies, demanding specific disclosures, delisting, and adopting other safety mechanisms.”

Shroder has also been asked to respond to inquiries pertaining to the tools and procedures used by the exchange to lower risks, fraud, and scams.

According to a recent survey, 46% of adult cryptocurrency users in the US experienced financial losses due to the ongoing crypto winter.

In search of a “new method to invest,” the clear majority of respondents explored investing in cryptocurrencies and said it was an “excellent way to gain money.”