Binance US has denied reports drawing parallels between it and “fraudulent exchanges that have gone bankrupt.” The US-based cryptocurrency trading platform emphasized that “only Binance.US employees” have access to its bank accounts, debunking the claim that global crypto exchange Binance has “secret access.”
Binance US Clarifications
Binance US, a US-based cryptocurrency trading platform affiliated with global crypto exchange Binance, has denied reports comparing it to fraudulent and bankrupt crypto exchanges. Binance and Binance US claim to be separate entities with different management teams.
“There have been many attempts to draw parallels between Binance.US and the fraudulent exchanges that went bankrupt,” the official Binance US Twitter account tweeted on Thursday. “There is no comparison,” the exchange stressed and provided some evidence to support its claims.
First, Binance US clarified that its management team consists of former employees of the US Department of Justice (DOJ), the Securities and Exchange Commission (SEC), the Federal Bureau of Investigation (FBI), and the Federal Reserve Bank of New York. (Fed of New York). Exchange detail:
Our leadership team is made up of former members of the Department of Justice, the Securities and Exchange Commission, the FBI, and the Federal Reserve Bank of New York who are committed to operating a secure platform and complying with US laws and regulations.
Binance US then turned to accusation, first published by Reuters, that Binance had “secret access to a bank account belonging to its ostensibly independent US partner.” The publication also claimed that in the first three months of 2021, more than $400 million moved from a Binance US bank account to Merit Peak Ltd., a trading firm run by Binance CEO Changpeng Zhao (CZ).
“While the market maker firm Merit Peak operated on the Binance.US platform, it ceased all activities on the platform in 2021,” Binance US stated. “We post our competitive and transparent market maker program on our website, which shows that firms are competing fairly for discounts.” Exchange insisted:
Only US Binance employees have access to US Binance bank accounts. Period.
In addition, Binance US has assured the crypto community that it does not use client funds, which came under scrutiny following the collapse of FTX, an exchange that allegedly mixed client funds. Binance USA emphasized:
Binance US has never traded or lent client funds. Binance US maintains 1:1 reserves at all times and is subject to regular audits and reporting by government authorities.
The SEC recently took action against several firms in the crypto sector, including Kraken for its staking program, Paxos for issuing the Binance USD (BUSD) stablecoin, and Terraform Labs for defrauding investors. Last week, SEC Chairman Gary Gensler proposed amending federal custody regulations to apply to all crypto assets.
What do you think of the clarifications provided by Binance US? Let us know in the comments below.
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Credit : news.bitcoin.com
