A lot of crypto platforms have gone bankrupt in 2022. This also includes one of the largest exchanges, FTX and many lending platforms like Celsius and BlockFi. So, when Binance US was dragged into this mess in a report, the exchange clarified that it was not like other fraudulent exchanges. So, there is no point in comparing them with the fallen platforms.
Binance US clarifies allegations.
To give some context, let’s first make clear that Binance and Binance US are two different entities. Even though they belong to the same company, their operations, assets, and teams differ. There were allegations on Binance that they have backdoor access to the bank accounts of Binance US. However, the crypto exchange clarified that was not the case, and only Binance US employees can access the intermediary’s bank accounts.
Binance US tweeted, “There have been many attempts to draw parallels between Binance.US and fraudulent exchanges that have gone bankrupt.” However, there is no comparison, and they also gave evidence to support their claims. The employees of Binance US are ex-employees of the US DOJ, SEC, FBI and more. This shows the platform is safe and abides by all US laws and regulations.
Talking about the allegations, Reuters stated that in Q1 2021, over $400 million in funds flowed between a bank account of Binance US to Merit Peak Ltd., a firm that Binance CEO managed. However, Binance US claimed it was a market-making platform and stopped all activity in 2021.
Binance US also clarified that they do not use customer funds for other purposes, investments or operations. So, unlike FTX users, if Binance users were to withdraw all funds at once, it would not be a problem as they always maintain at least 1:1 reserves and do regular audits.
About Binance US
Binance US is a cryptocurrency exchange that operates in the United States. It is a separate entity from the main Binance exchange, based in Malta and designed to comply with US regulations. It is worth noting that Binance US is only available to residents of the United States, and users must undergo a Know Your Customer (KYC) verification process before they can start trading.
What are your thoughts as Binance clarifies that it’s not like other fraudulent exchanges? Let us know in the comments below. And, if you found our content informative, do share it with your family and friends.
Also Read: World Wide Web inventor calls crypto ‘dangerous.’
