Binance heading towards big trouble


While most of the people in the world by now are aware of the fact that cryptocurrency or anything related to crypto is a huge scam, Binance, world’s largest crypto exchange is being blow-torched from all angles as the US regulators are going to take legal actions against it. This week, Binance was sued by the US regulators for violating financial laws in the United States whilst some media reports suggest that Binance has engaged in secret transfer of funds – meaning, people behind Binance are already aware of the fact that Binance is going to face a similar fate as FTX.

Binance was founded in 2017 by Changpeng Zhao and He Yi.

On March 27, 2023 the Commodities Futures and Trading Commission (CFTC) sued Binance and Changpeng Zhao, for breaching US financial laws. The regulator’s 74-page complaint contains some staggering allegations about how the exchange tried to dodge US regulators, and claims that Binance staff knew its compliance efforts were just “for show”.

Binance has denied the allegations.

Commenting about CFTC lawsuit against Binance, Marcus Sotiriou an analyst at digital asset brokerage GlobalBlock, told Business Insider: “This lawsuit from the CFTC shouldn’t be taken lightly. The CFTC takes less cases against crypto than the SEC but when they do, they come in with force”.

While Sam Bankman-Fried, founder of crypto scam racket FTX is going to be imprisoned for years by the US courts, where Sam Bankman-Fried and his cronies may live rest of their lives in prison and the investors of FTX would not get their hard-earned money refunded. A trio of former FTX executives – Caroline Ellison, Zixiao Gary Wang and Nishad Singh have already pleaded guilty to their own fraud and conspiracy charges.

Binance is now dealing with a raft of legal and regulatory probes over potential breaches of anti-money-laundering rules, and questions about whether it properly registered some crypto derivatives. The grilling comes as US regulators tighten their grip on the crypto industry following FTX’s collapse.

Binance is also fending off concerns about its handling of customer funds, following some reports that it used customer assets for its own purposes like FTX. The exchange transferred US$1.8 billion in stablecoin collateral to hedge funds, leaving its investors exposed, according to Forbes, which reviewed on-chain data from August 17 to early December.

Withdraw all investment from crypto

With the collapse of FTX and a similar fate for Binance, financial experts are suggesting people to refrain from putting their hard-earned money in crypto as the entire thing is a total scam. They also suggested people to immediately convert their Bitcoin and other cryptocurrency into actual cash and never ever put even one dollar in crypto. In their words – “crypto is grand scam venture. No one should believe it ever”.


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