The leading Bitcoin exchange, Binance, was also targeted this time by former SEC official John Reed Stark. Stark does not see a bright future for Binance. Moreover, he advises those who have an account on a crypto exchange to ‘close’!
John Reed Stark: This Bitcoin exchange your future is in danger
cryptocoin.comAs you follow, the circle around Binance, the world’s largest crypto exchange, is getting narrower. The Bitcoin exchange is on the radar and under severe pressure from US regulatory and supervisory agencies. More importantly, important claims are being made about the stock market. Binance’s future is at stake, according to former SEC Enforcement Division attorney John Reed Stark. Stark cites several red flags surrounding the Bitcoin exchange, including a CFTC action alleging regulatory violations, allegations of mixing client funds, and a lack of proof of reserves and audited financials.
He also talks about the resignation of Binance’s so-called auditor. On top of that, he voices his concerns about the mystery of the company’s headquarters location. Stark criticizes Binance’s proof of reserve, which the company previously touted as proof of financial stability. In this context, the Public Company Accounting Oversight Board (PCAOB) says the audit of proof of reserve is not considered reliable.
Stark argues that Binance’s proof of reserve audit is inadequate. It also suggests that legitimate organizations will not accept this as proof of anything. Binance notes that due to the accounting profession’s lack of understanding of the crypto ecosystem, it is “far away” from a traditional audit of its finances.
“Those who have a Binance account should exit the platform immediately!”
According to John Reed Stark, the CFTC’s sanctions decision against Binance is perhaps the most important red flag. The action claims that Binance has encouraged customers and employees to evade US regulations since at least 2018. Stark also accuses crypto firms like Binance of “regulatory misconduct” by hijacking legitimate regulatory labels to create a false overlay of assurance, integrity, expertise and regulatory oversight.
According to the former SEC official, there are numerous red flags regarding Binance. Given the potential for further civil and criminal prosecutions, Stark advises those with a Binance account to exit the platform immediately.
However, Binance CEO Changpeng Zhao (CZ) says such claims are a FUD. In other words, he considers fear, uncertainty and doubt and recommends that they be ignored. On the other hand, the circle around Binance is getting narrower with the pressures in the USA. When the discourses of figures such as John Reed Stark are added to this, the color of the work changes. Time will tell who is right!
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