crypto giant Binancehas been battling speculation and US officials for some time now. The exchange and its CEO may be prosecuted for possible money laundering and violating sanctions. According to media reports, US prosecutors gathered the necessary evidence to make the accusation.
According to a report by Reuters, the pressure on Binance will continue to increase. As we have reported as Koinfinans.com, the stock market experienced a fund outflow of $ 6 billion in just 72 hours last week. Exchange officials claimed that with the help of his solid foundations, he carried out these transactions in full.
Binance remains relatively ‘secret’, despite having generated $22 trillion in volume this year. The stock market, which stands out as an offshore company, continues to have some secrets. Reutersunderlined that in addition to the secret location of its headquarters, its records are not open.
Binance Hubs Just Showcase!
According to the allegations in the same report, even basic information such as Binance’s income, expenses and cash reserves is not accessible. Binance, which has 14 different centers such as the EU, UAE and Canada, does not seem to have submitted sufficient documents regarding these centers. Although there are 14 different centers, the transaction volumes of these centers are very different.
US officials, on the other hand, drew attention to these shortcomings and stated that the centers were actually ‘no more than a showcase’.
John Reed Stark, former head of the U.S. Securities and Exchange Commission’s Internet Enforcement Office, criticized Binance, highlighting significant shortcomings. Stark believes Binance uses regulatory terminology to legitimize itself. According to Stark, the financial position of the stock market is absolutely not transparent and cannot be confirmed. Moreover, this transparency FTX worse than the stock market.
Binance Chief Strategy Officer Patrick Hillmann claimed that Reuters’ analysis was “categorically inaccurate”.
“The amount of corporate and financial information that needs to be disclosed to regulators in these markets is enormous and requires a disclosure process that typically takes six months. We are a private company and we do not have to disclose our corporate financial situation to the public,” Hillman defended the activities of the company.
Hillmann also stated that the founder of FTX was accused of fraud by the US authorities. If these allegations were true, he commented, “it would be fraud no matter what regulations were in place.”
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.