Recent report published by Reuters suggests that Binance’s finances are ‘black box’
According to John Reed Stark, a former director of the Office of Internet Enforcement at the U.S. Securities and Exchange Commission (SEC), Binance’s finances are even more “opaque” than those of FTX, according to Reuters. Additionally, he claimed that the exchange was not transparent. Reuters’ examination of the corporate papers of the crypto behemoth revealed that almost little is known about Binance.com, the largest cryptocurrency exchange.
Former SEC Official Says Binance’s Finances Are Even More Opaque Than Those of FTX
Binance doesn’t release information about its cash reserves, earnings, or revenue. Also unknown is the exact location of the cryptocurrency exchange, which has handled an estimated $22 trillion worth of cryptocurrency this year.
When allowing clients to margin trade using borrowed money, Binance neglects to give information regarding the position of its native token on the balance sheet or its risk exposure.
According to reports, some federal prosecutors in the United States have accumulated sufficient proof to file criminal charges against Changpeng Zhao, the CEO of Binance, for alleged money laundering.
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