Bitcoin News and Finance
Binance US Refutes Reports Comparing It to Fraudulent Crypto Exchanges Skip to main content

Binance US Refutes Reports Comparing It to Fraudulent Crypto Exchanges

Binance US Refutes Reports Comparing It to Fraudulent Crypto Exchanges

Binance US has refuted reports that draw parallels between it and “fraudulent exchanges that have gone bankrupt.” The U.S.-based crypto trading platform stressed that “only Binance.US employees” have access to its bank accounts, denying the allegation that global crypto exchange Binance has “secret access.”

Clarifications by Binance US

Binance US, a U.S.-based cryptocurrency trading platform affiliated with the global crypto exchange Binance, has refuted reports that compare it to fraudulent and bankrupt crypto exchanges. Binance and Binance US claim that they are separate entities with different management teams.

“There have been many attempts to draw parallels between Binance.US and fraudulent exchanges that have gone bankrupt,” the official Twitter account for Binance US tweeted Thursday. “There is no comparison,” the exchange stressed and proceeded to provide some evidence to support its claims.

Firstly, Binance US explained that its leadership is comprised of ex-employees of the U.S. Department of Justice (DOJ), the Securities and Exchange Commission (SEC), the Federal Bureau of Investigation (FBI), and the Federal Reserve Bank of New York (NY Fed). The exchange detailed:

Our leadership team is staffed with former DOJ, SEC, FBI, and NY Fed employees who are committed to operating a platform that is safe and abides by U.S. laws and regulations.

Binance US then addressed the allegation, first published by Reuters, that Binance had “secret access to a bank account belonging to its purportedly independent U.S. partner.” The publication further alleged that over the first three months of 2021, more than $400 million flowed from the bank account of Binance US to Merit Peak Ltd., a trading firm managed by Binance CEO Changpeng Zhao (CZ).

“While there was a market-making firm named Merit Peak that operated on the Binance.US platform, it stopped all activity on the platform in 2021,” Binance US claimed. “We list our competitive and transparent market maker program on our website, which shows that firms fairly compete for rebates.” The exchange insisted:

Only Binance US employees have access to Binance US bank accounts. Period.

In addition, Binance US assured the crypto community that it does not make use of customer funds, a subject that is heavily scrutinized following the collapse of FTX, the exchange that allegedly commingled customer funds. Binance US emphasized:

Binance US has never — and will never — trade nor lend out customer funds. Binance US always maintains 1:1 reserves and is subject to regular audits and regulatory reporting by government entities.

The SEC recently took action against several firms in the crypto sector, including Kraken over its staking program, Paxos over its stablecoin Binance USD (BUSD) issuance, and Terraform Labs for defrauding investors. Last week, SEC Chairman Gary Gensler proposed amending federal custody rules to cover all crypto assets.

What do you think about the clarifications provided by Binance US? Let us know in the comments section below.

Labels:

Comments

Post a Comment

Popular posts from this blog

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl...
Post a Comment
Read more

Axie Infinity Down 40% Since Last Week’s Price High, Protocol Revenue Outshines Competitors

Last week, the game token leveraged within the Axie Infinity gaming universe skyrocketed to all-time highs, while other crypto markets remained extremely lackluster. During the last seven days, Axie Infinity’s platform token has dropped significantly in value shedding more than 12%. Meanwhile, the game platform’s smooth love potion token has slid over 8% over the last 24 hours. Axie Infinity Down More Than 40% Since All-Time High Not too long ago, the axie infinity (AXS) token was a topical conversation because it reached an all-time high on July 15. At the time, AXS managed to capture $28.93 per unit and since then it has shed 12.8% during the last seven days. The axie infinity (AXS) token is used within the blockchain-based game that involves battles between token-based creatures called “Axies.” AXS is used for the game’s governance system as well as other actions within the game. At the time of writing axie infinity (AXS) is exchanging hands for $16.70 per coin. AXS/USD on Ju...
Post a Comment
Read more

Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon

The Play-to-Earn NFT based Polker.Game ‘s native token $PKR has been officially listed on the popular centralized exchange BitMart. Polker.game has been in the spotlight recently as Akon, the American R&B superstar and record producer gave his official endorsement of polker stating that the “game is revolutionary” and that Polker is “hands down.. the best play to earn, NFT game in the space.”. With the BitMart listing and celebrity endorsement from Akon, Polker is perfectly positioned to become a major player in the Play-to-Earn league. Watch Akon’s Video Here What is Play-to-Earn? Although not a new concept, play-to-earn has become a trending term due to the popularity of the NFT game AXIE infinity. In the past, previous play-to-earn games have also achieved success – however, thanks to the huge amount of development in the blockchain space in recent years the gaming experience is now massively improved. Play-to-Earn games are essentially free to play and open to anyone and...
Post a Comment
Read more

China to Crack Down on Copyright Infringement Through NFTs

Authorities in China are going after creators of digital collectibles based on other people’s works of art, the use of which was not authorized. The government offensive is part of a campaign to combat online copyright infringement and piracy with the participation of several departments. Regulators in China Move to Strengthen Copyright Supervision of Online Platforms The National Copyright Administration of China (NCAC) has recently launched a campaign against copyright infringement and piracy on the internet, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office of the People’s Republic. A major objective of the initiative is to improve copyright supervision of online businesses by investigating cases involving the sale and distribution of infringing products on short video, live broadcast and e-commerce platforms, and promptly dealing with infringing content, the agency announced in a press r...
Post a Comment
Read more
Blogarama - Blog Directory