According to an assessment of Binance’s corporate papers conducted by Reuters, the primary component driving the growth of the crypto empire — the colossal Binance(.)com exchange — has facilitated transactions with a total value of over $22 trillion this year. However, details regarding these have mostly been concealed from the general public.
Concerns Over Binance Grows
Binance, which is touted as the largest cryptocurrency exchange in the world, seems to be facing a crisis of trust as a result of the sharp decline in the value of its native token, BNB, and an uptick in the number of user withdrawals.
Although, the exchange claimed that due to its strong financial position they have been able to manage net outflows of $6 billion over 72 hours last week without “breaking stride.”
Read More: Massive BNB Selling Amid Binance FUD, Where Is It Heading?
However, along with the publicly hidden information regarding its $22 Trillion trades occurring this year, Binance refuses to disclose its location of work or that of Binance.com, as per Reuters. It also withholds basic financial data including revenue, profit, and cash on hand.
More Gaping Holes Found
The crypto firm also remains tight-lipped about its BNB token and what impact it has on the exchange’s balance sheet.
According to Binance, customers are able to borrow money to trade on margin and obtain loans backed by their crypto assets. But, as per the analysis, the quantity of those bets, the degree to which Binance is exposed to that risk, or the amount of money the company has set aside in reserves to cover withdrawals are not discussed in detail.
Read More: “We’re Financially Strong” Says Binance’s CZ: Interview
Commenting on the numerous jurisdictions where Binance operates, John Reed Stark, a former chief of the U.S. SEC’s Office of Internet Enforcement states that,
They 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.
He further claims that, Binance’s operations are more shrouded in mystery than FTX’s business dealings.
Binance Facing Legal Issues
Since Binance accounts for more than half of all trading volume in the cryptocurrency market, U.S. officials are particularly interested in how it does business.
Read More: Prosecutors Split Over Charging Binance & CZ
According to Reuters, some prosecutors think they have enough evidence to indict Binance and its certain top executives.
The business is under investigation by the U.S. Justice Department for potential money laundering and violating sanctions.
The post Breaking: Binance’s Mysterious Trades Worth $22 Trillion Found In Latest Analysis appeared first on CoinGape.
