Binance is facing allegations that it misled US lawmakers about its business dealings and relationship with its American unit. Senators Elizabeth Warren and Chris Van Hollen have asked the Justice Department to investigate whether Binance made false statements to Congress earlier this year.

The Securities and Exchange Commission (SEC) has also filed a lawsuit alleging that Binance's global entity and American unit were commingled. The independence of Binance's American unit is critical for regulatory jurisdiction and liability in the event of bankruptcy.