Binance claims distinctiveness from other exchanges in light of SEC lawsuit.
On June 7, Binance, a cryptocurrency exchange, posted a statement on its Chinese social media channels with the hashtag #StrongTogether. In the midst of an ongoing legal battle with the United States Securities and Exchange Commission (SEC), Binance asserted that its wallet addresses are transparent and that the exchange has never “siphoned consumers’ funds” or engaged in “any collateralized borrowings.”
Furthermore, Binance claimed that it has never provided “large donations” to political candidates or made “large sponsorships” to entertainment and media entities. A translated version of the exchange’s message reads:
“Our community comes from many different races, ethnicities, and beliefs; we will continue to BUILD for our users and stand up for the industry. We are different than ___. We are Binance.”
Although Binance did not directly name the cryptocurrency exchange it is seeking to distinguish itself from, FTX, a troubled cryptocurrency exchange, has been accused of mismanaging consumers’ assets and lending money to its sister hedge fund, Alameda Research.
- Binance’s acquisition of Gopax in South Korea has been delayed by regulators due to the SEC lawsuit.
- SEC’s New Era for Crypto Ends Wild West.
- Bitcoin remains strong amidst SEC lawsuits against Binance in First Mover Americas report on blockchain.
Sam Bankman-Fried, the founder of the exchange, is currently under house arrest and awaiting trial on charges of wire fraud. Bankman-Fried was the second-largest donor to the U.S. Democratic Party between 2020 and 2022, allegedly doing so by giving away clients’ assets.
In addition, FTX was previously the $135 million sponsor of the Miami Heat arena. The exchange is currently undergoing bankruptcy proceedings, with an estimated balance sheet gap of $8 billion and owing an estimated $44 billion to the U.S. Internal Revenue Service through its subsidiaries.
On June 5, the SEC filed a lawsuit against Binance, alleging the sale of unregistered securities to U.S. users and operating an unregistered exchange in the U.S. The lawsuit accused Binance of “commingling” and “diverting” investors’ crypto and fiat funds. According to data compiled by blockchain analytics firm Nansen, Binance currently has a net worth of $59 billion.
币安始终与我们的社区在一起。行业团结，共同BUILD。 #StrongTogether #Binance #币安 pic.twitter.com/l3q7A2rVC3
— 币安Binance中文频道 (@binancezh) June 7, 2023
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