Binance chief denies fund mismanagement allegations

Binance chief responded against the Retuers’ allegations and confirmed that all the financial operations were fair & report failed to consider the firm’s  stablecoin business. 

Binance is a top ranked crypto firm by trade volume on the platform. The services of this exchange are available in several countries. In the US, Binance provides services via BinanceUS. 

Recently a Retuers’ report alleged that the Binance exchange failed to comply with the United States banking regulations system because the exchange failed to keep the firm balance & customers’ fund separately in 2020 & 2021.

Reuters’s allegations were based on  three insider with the knowledge of the Binance exchange. Report also alleged that the comingling of funds occured at the Silvergate Bank, which has collapsed just a few months ago. 

Binance chief of communication Patrick Hillmann responded against all these allegations and said that Binance never voilated any rules or laws and also confirmed that such kind of situation never occurred in the past. 

Patrick also provided clarity against Reuters’s allegations and explained that funds in Silvergate were best of the Stabelcoin business, where Paxos was able to redeem against the customers deposit for BUSD stablecoin.

Binance vs CFTC

In March of this year, Binance exchange was sued by the American Commodities regulatory body over unregistered derivatives crypto trading services.

The CFTC agency alleged that Binance provided services secretly with the help of VPN services & failed to prohibit the American investors on the platform.

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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