 | As a follow up my post yesterday, the SEC suit against Binance comes with more news, that should be shocking, but in crypto it is only par for the course. Crypto is synonymous with yachts after all. As a small TLDR on part the other post as it is important background for understanding this one, it says that that Binance used dozens of accounts owned by entities that were controlled by Binance and CZ. The two most significant of these are Sigma Chain and Merit Peak, who were in operation since the inception of Binance and under their influence and control and conducted very significant wash trading operations. Also bear in mind that Binance US was to be run by BAM Management the same way and instead of being being run by Binance who instead runs Binance[.com], However BAM in practice had little control outside what Binance afforded them and BAM management only functions on the whims of CZ and Binance as a shell company, even being denied financial data like user transactions, accounting data, financial transfers etc The suit when on to characterize CZ as insisting on Sigma Chain being a market maker, particular one under the control of him and Binance. The CEO of BAM expressed under oath that Binance US markets were heavily dependent on these CZ controlled market makers as a source of liquidity and reiterated also the heavy control by CZ. It then goes on to state that at least 200M in funds were transferred from Binance accounts to this market maker. Funds allegedly flowed from both Binance US and BInance .com which is clear comingling of user funds, and present a huge risk as user are unaware of the true location and state of their funds which may easily "disappear" as they are no longer under Binance's accounts. Some of which was used to purchase a yacht. Unfortunately, CZ and co. didn’t manage to go missing on a boating accident before all these allegations dropped. The allegations then go on to clearly state the account was a pass though account for both Binance US and .com [link] [comments] |
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