world’s largest cryptocurrency exchange Binance was accused by the co-owner of the Binance UK subsidiary Dimplx of submitting a “largely false” annual report in 2020.
The news was first published by the Financial Times.
Dimplx Executives Alleged Binance Misreported in the UK in 2020
Dimplx’s executives said the financial statements of one of Binance’s UK companies did not “accurately report” the nature of its business and did not reflect its assets, liabilities and turnover “including potential tax liabilities.”
Founded in 2019 as part of a joint venture with Binance, Dimplx made this claim in its filings this month, highlighting the role UK companies played in Binance’s global operations in the period before the UK’s financial regulator, the Financial Conduct Authority (FCA). raised relevant questions.
In June 2021, the FCA issued a consumer warning against Binance Markets Ltd, the UK subsidiary of the cryptocurrency exchange group Binance, prohibiting it from engaging in any regulated activity in the UK.
Institution, bitcoin The exchange said it did not provide basic information about Binance’s activities, such as “trade names and functions for all group entities globally.”
In Dimplx’s annual report to February 2021, company executives Simon Dingle and Joshin Raghubar claim that there are a number of inaccuracies in Binance Digital’s 2020 accounts.
Binance’s filing states that at the end of 2020, Binance Digital had approximately £100 million ($100 million) of “cash and/or bank balances”, the same amount owed to “creditors”.
Dimplx executives said they believe the £100 million represents balances held “on behalf of Binance Digital customers who visit binance.com” and are “obligated to pay transaction fees”.
However, Dimplx said its financial statements recorded “zero turnover or fees” for any transactions recorded by customers during the fiscal year. Binance Digital’s 2020 accounts say no turnover or income was recorded during the year and the company pays no taxes in the UK.
Dimplx said it plans to file a lawsuit against Binance over business relationship disputes, but did not elaborate on its allegations.
*Not investment advice.
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