Our leadership team is staffed with former DOJ, SEC, FBI, and NYFed employees who are… - Binance.US 🇺🇸 February 16, 2023
The real facts speak for themselves: there is no comparison. There have been many attempts to draw parallels between and fraudulent exchanges that have gone bankrupt. It did not elaborate on when in 2021 the activity ceased, or comment on Zhao’s role at the trading firm.Ī spokesperson for Binance.US referred CNN to its Thursday tweet, emphasizing the line that reads: “ONLY Binance.US employees have access to Binance.US bank accounts. “While there was a market making firm named Merit Peak that operated on the Binance.US platform, it stopped all activity on the platform in 2021,” Binance.US said in a tweet on Thursday after the Reuters story was published. Reuters reported on Thursday that Binance had secret access to a bank account belonging to its purportedly independent US partner and transferred large sums of money from the account to the trading firm, Merit Peak Ltd. John Ray III, the bankruptcy expert who succeeded Bankman-Fried as the head of FTX as part of its winding-up process, told a congressional hearing on Tuesday that he had “never seen such an utter lack of record keeping” as he did at the exchange, which had “absolutely no internal controls whatsoever”.The US partner of global cryptocurrency exchange Binance has confirmed that a trading firm managed by Binance CEO Changpeng Zhao operated as a market maker on its platform. The various charges include multiple counts of wire fraud and securities fraud, campaign finance violations, and money-laundering offences.īankman-Fried was denied bail in the Bahamas, where he is being held pending extradition to the US. The jitters over Binance came as Sam Bankman-Fried, the founder and chief executive of FTX, once Binance’s chief rival, was charged by the SEC, CFTC, and Department of Justice for his role in the catastrophic failure of his crypto exchange. In a tweet, Zhao said the company would be doing an independent audit on liabilities, but that “liabilities are harder”, adding: “We don’t owe any loans to anyone. We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. For more information see our Privacy Policy. Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. Withdrawals of USDC, a “stablecoin” that is widely seen as one of the safest assets in the sector, since it is issued by a US-based company that complies with financial regulators and pegged to the US dollar, were paused for more than eight hours over the course of Tuesday. We passed this extreme stress test because we run a very simple business model – hold assets in custody and generate revenue from transaction fees.”īut the outflow came after Binance was forced to halt withdrawals in one particular cryptocurrency because, Zhao said, the company could not fulfil them until its American banking partners opened for business.
In a statement from Binance, the company said: “We think that it’s important to note that yesterday’s market sell-off resulted in approximately $1.14bn being withdrawn from our platform in a 12-hour period, which was managed with ease. Zhao insisted that Tuesday was not even in the top five days for net withdrawals. “I actually think it is a good idea to ‘stress test withdrawals’ on each CEX on a rotating basis,” he added, with a biceps curl emoji. Some days we have net withdrawals some days we have net deposits.
“We saw some withdrawals today,” Zhao tweeted on Tuesday.
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