{"id":1782330,"date":"2022-12-21T06:05:04","date_gmt":"2022-12-21T11:05:04","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1782330"},"modified":"2022-12-21T07:34:08","modified_gmt":"2022-12-21T12:34:08","slug":"binance-crypto-exchange-faces-heavy-scrutiny-as-22-trillion-worth-in-hidden-trades-are-found","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/binance-crypto-exchange-faces-heavy-scrutiny-as-22-trillion-worth-in-hidden-trades-are-found\/","title":{"rendered":"Binance Crypto Exchange Faces Heavy Scrutiny as $22 Trillion Worth in Hidden Trades Are Found"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">30<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbinance-crypto-exchange-faces-heavy-scrutiny-as-22-trillion-worth-in-hidden-trades-are-found%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1782330&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Binance, the world\u2019s biggest <a href=\"https:\/\/www.theepochtimes.com\/t-crypto-exchange\">crypto exchange<\/a>, is under heavy scrutiny as $22 trillion worth in hidden trades were found, according to a recent report.<\/p>\n<p>The exchange is currently attempting to drum up confidence after a surge in customer withdrawals and a massive drop in the value of its digital token, BNB, has it\u00a0facing a reliability crisis<\/p>\n<p>An assessment of\u00a0Binance\u2019s\u00a0corporate filings conducted <a href=\"https:\/\/www.reuters.com\/technology\/binances-books-are-black-box-filings-show-crypto-giant-tries-rally-confidence-2022-12-19\/?rpc=401&#038;\">by Reuters in a special report<\/a> shows that the primary component behind the growth of its massive Binance.com exchange, which has facilitated trades worth over a total value of $22 trillion this year, has been mostly concealed from public view.<\/p>\n<p>Binance said that due to its strong financial position they have been able to manage net outflows of $6 billion over 72 hours last week without \u201cbreaking stride\u201d and that they take their \u201cresponsibility as a custodian seriously,\u201d reported Reuters.<\/p>\n<p>The firm\u2019s founder and CEO, Changpeng Zhao, told investors that his company would \u201clead by example\u201d in embracing transparency after the collapse of its major rival, <a href=\"https:\/\/www.theepochtimes.com\/t-ftx\">FTX<\/a>, on Nov. 11.<\/p>\n<p>Binance was one of the few major crypto firms to not incur any major losses in the wake of the FTX meltdown.<\/p>\n<h3>Binance Refuses to Disclose Internal Documentation Regarding Its Basic Finances<\/h3>\n<p>In addition to the mysterious $22 trillion in trades this year, Binance refused to disclose\u00a0basic financial information such as revenue, profit, and cash reserves, the location of its operations, as well as that of Binance.com, to investigators from Reuters.<\/p>\n<p>Binance, which is registered in the Cayman Islands, also would not reveal what role or impact its BNB coin has on its own balance sheet.<\/p>\n<p>The crypto exchange lends users money against their crypto assets and lets them trade on margin using borrowed funds, but does not disclose how big those bets are, how much it exposes itself to that risk, or even the full extent of its reserves that allow it to facilitate withdrawals.<\/p>\n<p>Unlike its American rival Coinbase, which is listed on the Nasdaq,\u00a0Binance is not required to publish detailed financial statements because it is not a publicly traded company.<\/p>\n<p>The Chinese-founded firm has not raised outside capital since 2018, according to records, which excused it from sharing financial data with external investors since then.<\/p>\n<p>In February 2022, Binance bought a $200 million stake in\u00a0Forbes. and\u00a0acquired $1.022 billion in Voyager assets on Dec. 19, despite the criticism over the transparency status of its cash reserves.<\/p>\n<h3>CEO Claims the Crypto Exchange\u2019s Finances Are Sound Amid DOJ Investigation<\/h3>\n<p>\u201cWe have the assets to convert. And, there\u2019s no margin, there\u2019s no leverage, we just needed the banks to open. When banks are closed and you try to withdraw money it doesn\u2019t work,\u201d\u00a0<a href=\"https:\/\/twitter.com\/SquawkCNBC\/status\/1603421250793209857\">Zhao told CNBC.<\/a><\/p>\n<p>Zhao claimed that his firm was financially stable and was the strongest exchange in the industry after the reports about its alleged\u00a0difficulties faced last week.<\/p>\n<p>\u201cOur finances are sound. The legal team will handle it,\u201d he responded, after being asked if\u00a0Binance could afford to repay the $2.1 billion it earned from leaving FTX in 2021.<\/p>\n<p>In May 2021, Binance was put under <a href=\"https:\/\/www.theepochtimes.com\/t-investigation\">investigation<\/a> by both the\u00a0U.S. Department of Justice\u00a0and the Internal Revenue Service\u00a0on allegations of\u00a0money laundering\u00a0and tax violations.<\/p>\n<p>Federal investigators and prosecutors have been probing how the firm does business, as the exchange currently accounts for more than half of all trading volume in the cryptocurrency market.<\/p>\n<p>It has allowed been alleged that Binance allowed crypto transactions worth $1 billion for Iran-based companies, violating U.S. sanctions laws.<\/p>\n<p>The DOJ is apparently divided on whether it should move ahead with filing criminal charges against Binance and its top executives, Reuters\u00a0<a href=\"https:\/\/www.reuters.com\/article\/fintech-crypto-binance-doj-idUSL8N3321X6\" rel=\"nofollow\">reported<\/a>.<\/p>\n<p>Some prosecutors think they have enough evidence to issue indictments.<\/p>\n<p>\u201cReuters has it wrong again. Now they\u2019re attacking our incredible law enforcement team. A team that we\u2019re incredibly proud of\u2014they\u2019ve made crypto more secure for all of us. Here\u2019s the full statement we sent the reporter and a blog about our remarkable law enforcement team,\u201d commented Binance in a <a href=\"https:\/\/twitter.com\/binance\/status\/1602287184400326656?ref_src=twsrc%5Etfw\">tweet<\/a>\u00a0regarding the DOJ investigation.<\/p>\n<p>The firm was also suspended in June 2021 from conducting regulated activity in the United Kingdom by Britain\u2019s Financial Conduct Authority.<sup id=\"cite_ref-10\" class=\"reference\"><\/sup><\/p>\n<p>Filings by Binance offices in 14 jurisdictions where the exchange <a href=\"https:\/\/www.binance.com\/en\/legal\/home\">listed<\/a>\u00a0its \u201cregulatory licenses, registrations, authorizations, and approvals,\u201d\u00a0in locations such as Dubai, Switzerland, Canada, and several member members of the\u00a0European Union, were reviewed by Reuters.<\/p>\n<p>\u201cThey are co-opting the nomenclature of regulation to create a veneer of legitimacy. There is absolutely no transparency, no sunlight, no confirmation of any kind about its financial position,\u201d John Reed Stark, a former chief of the U.S. Securities and Exchange Commission\u2019s Office of Internet Enforcement, told Reuters, regarding the\u00a0numerous jurisdictions where Binance operates.<\/p>\n<p>\u201cThere is absolutely no transparency, no sunlight, no confirmation of any kind about its financial position.\u201d Stark noted.<\/p>\n<p>He believes that Binance\u2019s operations are more shady and questionable than FTX\u2019s business dealings.<\/p>\n<h3>Leading Auditing Firm Dumps Binance and Other Crypto Firms<\/h3>\n<p>Auditing firm\u00a0Mazars suspended its services\u00a0for Binance and other crypto exchanges after it failed to be\u00a0reassured by their asset reports, <a href=\"https:\/\/t.co\/PnvH4NdjJc\">reported Bloomberg.<\/a><\/p>\n<p>\u201cMazars has indicated that they will temporarily pause their work with all of their crypto clients globally, which include Crypto.com, KuCoin, and Binance. Unfortunately, this means that we will not be able to work with Mazars for the moment,\u201d said a Binance spokesperson.<\/p>\n<p>The news of Mazars cutting ties with the crypto exchange appears to have caused a drop in BNB coin\u2019s value.<\/p>\n<p>This combined with a bearish sentiment in the crypto market continues following the Federal Reserve\u2019s indication of a continued rate hike in 2023, which has led to an uptick in short-selling activity since last week, <a href=\"https:\/\/coingape.com\/massive-bnb-selling-amid-binance-fud-where-is-it-heading\/\">reported Coingape.<\/a><\/p>\n<p dir=\"ltr\" lang=\"en\">Meanwhile, Patrick Hillmann, Binance chief strategy officer, told Reuters that its analysis of the units\u2019 filings in the 14 jurisdictions was \u201ccategorically false.\u201d<\/p>\n<p dir=\"ltr\" lang=\"en\">\u201cThe amount of corporate and financial information that has to be disclosed to regulators in those markets is immense, often requiring a six-month-long disclosure process,\u201d said Hillman.<\/p>\n<p dir=\"ltr\" lang=\"en\">\u201cWe are a private company and are not required to publicize our corporate finances,\u201d he continued.<\/p>\n<p>As of the afternoon of Dec. 19, BNB coin stood at $243, down 2.49 percent in the last 24 hours, according to price tracking platform\u00a0<a href=\"https:\/\/coinmarketcap.com\/currencies\/bnb\/\" rel=\"nofollow\">CoinMarketCap<\/a>.<\/p>\n<p><em>Reuters contributed to this report.<\/em><\/p>\n<div class=\"author_wrapper\">\n<div class=\"one_author_block round\">\n<div class=\"top_row\">\n\t\t\t\t\t<a href=\"https:\/\/www.theepochtimes.com\/author-bryan-jung\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/10\/ttl7daySGw_WEB_BrianJung.jpg\" alt=\"Bryan Jung\"   style=\"display:none\"><\/a>\n\t\t\t\t\t<\/div>\n<p>Bryan S. Jung is a native and resident of New York City with a background in politics and the legal industry. He graduated from Binghamton University.\n<\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Binance, the world\u2019s biggest crypto exchange, is under heavy scrutiny as $22 trillion worth in hidden trades were found, according to a recent report.The exchange is currently attempting to drum<\/p>\n","protected":false},"author":1,"featured_media":1695376,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[10762,8369,5458,6987,4063,8879,9951,3819,4108,10763,5502],"class_list":["post-1782330","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-10762","tag-binance","tag-bongino","tag-crypto","tag-exchange","tag-heavy","tag-hidden","tag-report","tag-scrutiny","tag-trades","tag-worth"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1782330","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1782330"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1782330\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1695376"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1782330"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1782330"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1782330"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}