Reuters claimed that Binance combined client funds with company revenues in 2020 and 2021.
While the crypto market continues to stagnate and exhibit a calm price volatility, news flows that will create a bombshell effect continue to come to the sector.
Finally, Reuters stated that Binance equates customer funds with company revenues and provides services for 2 years in this way. According to Reuters’ exclusive report, Binance violated US financial rules.
Shocking Claim About Binance
Reuters created a special news about Binance by referring to three sources who have knowledge of the subject. According to this news, Binance mixed customer funds into the company account in 2020 and 2021.
One of the sources for Reuters stated that Binance has billions of dollars in assets and that a fund shuffle occurs every day in the accounts the exchange keeps with Silvergate Bank. Allegedly, Binance kept customer funds and company funds in their Silvergate Bank accounts.
The sources, who stated that there were confusions in the accounts of Binance, which is called the largest crypto exchange in the world, also mentioned the lack of control.
Reuters included the statements of three former US regulators. According to these disclosures, Binance lacked the controls needed to ensure client funds were clearly identified and separated from company revenues.
This led to the mixing of client funds with company funds, making the status of client assets mysterious.
John Reed Stark, former chief of the Securities and Exchange Commission’s Internet Enforcement Office, said that Binance clients shouldn’t need an accountant to find their assets.
Finally, Reuters reported that Binance reached out to them and denied the rumors that the funds were mixed. Binance spokesperson Brad Jaffe told Reuters on the subject;
These accounts were not used to accept user deposits; used to make it easier for users to buy crypto. Since these are 100 percent institutional funds, there has never been a mix-up.
Jaffe argued that this is the same as ordering from Amazon.
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