![]() Binance released a ‘transparency’ statement in November showing it held around 58 million BNB worth around US$17 billion, but other data firms suggested the number of BNB was actually significantly lower. Some estimates put the total net outflow as high as 31%.Ĭoncerns are also increasing about the soundness of the tokens remaining on Binance, including its in-house, printed-out-of-thin-air BNB. On Monday, Forbes reported that this outflow shows no signs of abating, with customers having withdrawn roughly one-quarter of all assets held on the exchange since November. ![]() In November, as fear followed the collapse of the FTX exchange, customers began withdrawing billions from their Binance accounts. Binance US is run by BAM Trading Services, a company wholly owned by CZ, and the parade of CEOs that Binance US has had over its brief history suggests that they only stick around as long as they’re willing to say ‘how high’ whenever CZ says ‘jump.’ ![]() While the revelation that the allegedly ‘independent’ companies may be commingling user funds is indeed damning, it’s not like CZ’s been all that stealthy in the past. authorities may have difficulty going after Binance due to CZ’s alleged non-involvement with U.S.-facing operations, that façade came (further) undone last month when blockchain sleuths discovered digital wallets funneling billions between Binance US and the international exchange. edicts while reducing ‘friction’ by ignoring requirements to perform adequate ‘know your customer’ (KYC) and anti-money laundering (AML) checks.īinance’s chief strategy officer Patrick Hillmann declined to comment on the WaPo’s subpoena revelations while offering up the usual malarkey about how there’s nothing Binance founder Changpeng ‘CZ’ Zhao likes better than starting off every morning with a big steaming bowl of compliance. This includes the likelihood that continued to serve U.S. regulators from ongoing illegality at Binance’s international operation. customers, there are charges for avoiding the money laundering requirements.”īinance set up a U.S.-registered subsidiary ( Binance US) in 2019 as part of a well-organized plan to distract U.S. John Ghose, a former DoJ prosecutor specializing in cases targeting the ‘crypto’ sector, said Binance “did not have a reputation of being a responsible exchange.” Ghose theorized that prosecutors are trying to pin down Binance’s violations of the Bank Secrecy Act (BSA). While the report emphasized that this step doesn’t guarantee criminal charges are in the offing, it does mean the Department of Justice (DoJ) is drawing a more complete picture of Binance’s lengthy history of illegal activity. Attorney’s Office for the Western District of Washington had issued subpoenas to multiple investment firms seeking their communications with Binance. This weekend, the Washington Post reported that the U.S. Binance’s dealings with American hedge funds are under scrutiny by federal authorities just as the controversial digital asset exchange is enduring an unprecedented outflow of customer funds.
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