On June 7, cryptocurrency exchange Binance posted a statement on its Chinese social channels with the hashtag #StrongTogether. Amid ongoing litigation with the United States Securities and Exchange Commission, Binance said that its wallet addresses are transparent and that the exchange has never “diverted funds from consumers” or has “any guaranteed loans.”
In addition, Binance said that it never made “large donations” to political candidates or “large sponsorships” to entertainment and media entities. A translated version of the exchange message read:
“Our community comes from many different races, ethnicities, and beliefs; we will continue to BUILD for our users and defend the industry. We are different from ___. We are Binance.”
Although Binance did not specifically name the cryptocurrency exchange it is trying to differentiate itself from, Troubled cryptocurrency exchange FTX has been accused of embezzling consumer assets and lending money to its sister hedge fund Alameda Research.
The founder of the exchange, Sam Bankman-Fried, is currently under house arrest awaiting trial on wire fraud charges. Bankman-Fried was the second largest donor to the US Democratic Party between 2020 and 2022 – claiming to have done so by giving away client assets.
Additionally, FTX was previously the $135 million stadium sponsor of the Miami Heat. The exchange is in bankruptcy proceedings, with an estimated balance sheet mismatch of $8 billion, and owing some $44 billion to the US Internal Revenue Service through its affiliates.
On June 5, the SEC sued Binance, alleging the sale of unregistered securities to US users and the operation of an unregistered exchange in the US. The lawsuit accused Binance of “mixing” and “diverting” crypto and fiat funds from investors. Data collected by blockchain analytics company Nansen show that Binance currently has a net worth of $59 billion.
— 币安Binance中文频道 (@binancezh) June 7, 2023
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.