NewsletterBinance Accused For Using User Funds; Is It True Or FUD?
Cinneamhain Ventures CEO Adam Cochran accused Binance of being a “Ponzi” scheme with an obvious “hole across multiple assets.” When comparing the leading exchange to FTX, Cochran stated that while all funds have not yet vanished, customers do not deserve to pay for CEO Changpeng Zhao’s errors.
What’s the Matter?
On June 29, the exchange announced BCH/TUSD and CFX/TUSD trading pairs with no costs, according to a screenshot Cochran posted. He believes Binance’s motivation for the update is to allow users to continue publishing BCH while giving the impression that they are backing that volume with Sun’s unbacked shell company coin.
Your Binance assets are being used however they want.
The Binance Pegged Assets on BSC are not fully backed.
There is an asset hole, and their promos are just to cover their asses.
Get your fucking assets off Binance. Jfc.
— Adam Cochran (adamscochran.eth) (@adamscochran) July 10, 2023
Cochran allegedly claimed that the platform makes decisions on how to use users’ Binance assets without their consent.
Binance is also facing a lawsuit from the CTFC. One of the key arguments in the Binance case is that the company consciously tried to circumvent US laws by enabling American customers to conduct illegal transactions through VPN and other techniques that concealed their locations. The platform hasn’t taken sufficient steps to address potential money laundering and other crimes, according to the CFTC lawsuit.
Executives Leaving Binance
Law enforcement organizations, particularly the SEC and the United States Department of Justice, are paying closer attention to Binance. Investigations are being conducted into the business and its CEO, Changpeng Zhao, for allegedly not putting safeguards in place to stop money laundering.
Furthermore, the departure of numerous important executives has made Binance’s problems worse. These include a senior vice president for compliance, the general counsel, the head of investigations, the chief strategy officer, and others.
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