The parties are weighing each other’s hands in the lawsuit filed by the US Securities and Exchange Commission against Binance. The SEC is gradually narrowing the circle around Binance. Now, the collapsing crypto exchange has deciphered the relationship between FTX and Binance.US.
SEC reveals: Interesting Binance FTX link
As markets, customers, and industry watchers continue to scrutinize the SEC’s extensive lawsuit against cryptocurrency giant Binance and its subsidiaries, surprising new details are constantly coming to light. As you follow on Kriptokoin.com, Binance executives are facing multiple fraud charges in the SEC’s court filing. The SEC alleges that the crashing crypto exchange maintains a significant relationship with Binance’s U.S. subsidiary.
The regulator’s 136-page complaint contains unexpected revelations. Accordingly, Binance.US had a significant relationship with Alameda Research through its OTC trading desk. This detail is on page 55 of the document on the complaint. Thus, it uncovers a previously undetected connection between two major organizations in the crypto world. Thus, it adds another layer of intrigue to the legal battle.
The SEC makes a single reference to Alameda Research on page 55 this week. In this, the firm states that between May 2020 and February 2022, Binance.US is usually the only counterparty for OTC transactions. This statement does not directly involve Alameda Research or its CEO, Sam Bankman-Fried, in any misconduct related to the Binance case. It is no accident, however, that he included it in the complaint against Binance and its affiliates. Therefore, it is not possible to see it as unimportant.
What does Alameda Research’s involvement in the SEC complaint mean?
The involvement of Alameda Research in the complaint is particularly notable given the firm’s current legal issues. Alameda, the sister company of cryptocurrency exchange FTX, has come under scrutiny in recent months. The company’s CEO, Caroline Ellison, pleaded guilty to charges of conspiracy to commit wiretapping fraud and securities fraud, among other crimes. Bankman-Fried, former CEO of FTX, is currently awaiting trial.
The SEC document reveals that Binance.US’ OTC Desk traded over $654 million in 2021. It also clarifies that it primarily caters to institutional traders for large volume crypto/fiat pairs. The report also states that Alameda Research is frequently involved as a counterparty for these transactions through the platform’s OTC Desk.
The involvement of Alameda Research in the SEC’s complaint is significant in terms of different links. Because it highlights the extent to which crypto companies and exchanges do business with each other. Authorities around the world are increasing their surveillance of digital asset markets. In the process, the industry is also facing increasing pressure to improve compliance with financial regulations.
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