The U.S. Department of Justice (DOJ) is keeping a close eye on cryptocurrency giants Binance and Tether, as they are accused of having links to supporting terrorism, particularly Hamas, a designated terrorist group. This comes on the heels of the conviction of Sam-Bankman-Fried, and signals a new era of stricter enforcement of regulations.

U.S. Attorney Damian Williams has made it clear that the days of relaxed regulation are over. As financial fraud remains as old as commerce itself, the conviction of SBF serves as a reminder of the consequences of ignoring legal requirements.

Binance and Tether now face serious charges, and must rethink their approach to compliance. Binance, a major player in the world of cryptocurrency exchanges, and Tether, the company behind the widely-used USDT stablecoin, are alleged to have helped terrorist groups like Hamas with financial transactions. Tether took action by freezing assets upon learning of potential misuse, but their management and oversight of their operations to prevent currency misuse are also being reviewed.

Senators Lummis and Hill are emphasizing the importance of coupling innovation with integrity. While the cryptocurrency industry has brought about a financial revolution, it must not become a cover for illegal activities. The industry’s commitment to lawful behavior is currently being evaluated by the DOJ, with potential legal penalties for any failure to comply.