Binance US has refuted reports drawing parallels between the “bankrupt and fraudulent exchange.” The U.S.-based crypto trading platform emphasized that “only Binance.US employees” have access to bank accounts and denied claims that global crypto exchange Binance has “secret access.”
Clarification by Binance US
US-based cryptocurrency trading platform Binance US, which is affiliated with global crypto exchange Binance, refutes reports comparing it to fraudulent and bankrupt crypto exchanges Binance and Binance US are separate entities with different management teams and claim that they are.
“There have been many attempts to draw parallels between Binance.US and the fraudulent exchange that went bankrupt.” Binance US’s official Twitter account tweeted Thursday.” There is no comparison,” the exchange stressed, and proceeded to provide some evidence to support its claim.
First, Binance US explained that its leadership is comprised of former employees of the U.S. Department of Justice (DOJ), Securities and Exchange Commission (SEC), Federal Bureau of Investigation (FBI), and Federal Reserve Bank of New York (NY Fed). Details of the exchange are as follows.
Our leadership team includes former DOJ, SEC, FBI, and NY Fed officials who are committed to operating a platform that is secure and in compliance with US laws and regulations.
Next, Binance US addressed theallegationsfirst announced by Reuters. Reuters first published allegations that Binance had “secretly accessed bank accounts belonging to allegedly independent U.S. partners.” The publication further claimed that during the first three months of 2021, more than $400 million flowed from Binance US bank accounts to Merit Peak Ltd, a trading company run by Binance CEO Changpeng Zhao (CZ).
“There was a market making company called Merit Peak that operated on the Binance.US platform but ceased all activities on the platform in 2021.” Binance US claimed.” We have a competitive and transparent market maker program on our website, which shows that companies are competing fairly to get rebates.” The exchange claimed that:
only Binance US employees have access to Binance US bank accounts. Period
In addition, Binance US assured the crypto community that it would not use customer funds, a subject that is under intense scrutiny following the collapse of FTX, an exchange that allegedly commingled customer funds Binance US stressed, “Binance US is not a cryptocurrency exchange, and we are not a crypto exchange.
Binance US has never and will never trade or lend customer funds; Binance US always maintains a 1:1 reserve and is subject to regular audits by government agencies and regulatory reporting.
The SEC has recently taken action against several companies in the crypto sector, including Kraken for its staking program and Paxos for its stabling program.
