{"id":17850,"date":"2023-02-20T01:38:56","date_gmt":"2023-02-20T01:38:56","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/binance-us-refutes-reports-comparing-it-to-fraudulent-crypto-exchanges-exchanges-bitcoin-news\/"},"modified":"2023-02-20T01:38:56","modified_gmt":"2023-02-20T01:38:56","slug":"binance-us-refutes-reports-comparing-it-to-fraudulent-crypto-exchanges-exchanges-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/binance-us-refutes-reports-comparing-it-to-fraudulent-crypto-exchanges-exchanges-bitcoin-news\/","title":{"rendered":"Binance US Refutes Reports Comparing It to Fraudulent Crypto Exchanges \u2013 Exchanges Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
\n<\/p>\n

\n
\n<\/header>\n
\n\n<\/div>\n

Binance US has refuted reports that draw parallels between it and \u201cfraudulent exchanges that have gone bankrupt.\u201d The U.S.-based crypto trading platform stressed that \u201conly Binance.US employees\u201d have access to its bank accounts, denying the allegation that global crypto exchange Binance has \u201csecret access.\u201d<\/strong><\/p>\n

Clarifications by Binance US<\/h2>\n

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.<\/p>\n

\u201cThere have been many attempts to draw parallels between Binance.US and fraudulent exchanges that have gone bankrupt,\u201d the official Twitter account for Binance US tweeted Thursday. \u201cThere is no comparison,\u201d the exchange stressed and proceeded to provide some evidence to support its claims.<\/p>\n

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:<\/p>\n

\n

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.<\/p>\n<\/blockquote>\n

Binance US then addressed the allegation<\/a>, first published by Reuters, that Binance had \u201csecret access to a bank account belonging to its purportedly independent U.S. partner.\u201d 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).<\/p>\n

\u201cWhile 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,\u201d Binance US claimed. \u201cWe list our competitive and transparent market maker program on our website, which shows that firms fairly compete for rebates.\u201d The exchange insisted:<\/p>\n

\n

Only Binance US employees have access to Binance US bank accounts. Period.<\/p>\n<\/blockquote>\n

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:<\/p>\n

\n

Binance US has never \u2014 and will never \u2014 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.<\/p>\n<\/blockquote>\n

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

What do you think about the clarifications provided by Binance US? Let us know in the comments section below.<\/strong><\/em><\/p>\n

\n
\n\n<\/div>\n
\n
\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

\n
\n
\n<\/a>
\n<\/span>\n<\/p>\n<\/div>\n<\/div>\n

Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

\n

Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

\n