Binance CEO Changpeng Zhao (CZ), who has repeatedly promised transparency, reiterated his vow in the wake of the FTX bankruptcy. However, Reuters this week optuženi Binance of hiding its liabilities and concealing financial details.
Reuters even questioned whether Binance executives have an interest in market-makers that trade against customers of the exchange — as was the case at BitMEX, FTX, and other exchanges sued by the Commodity Futures Trading Commission (CFTC).
The outlet cited a comprehensive review of regulatory filings around the world, including interview requests sent to dozens of regulators.
Binance produces little evidence of extraordinary claims
Over the years, Binance and CZ have famously roamed the globe since odlazak China in an effort to avoid regulatory oversight. Indeed, Binance still refuses to disclose where its headquarters are located. All we do know is that CZ kupio an apartment in Dubai, making it anyone’s best guess.
Binance doesn’t publicly release information on its finances, profits, or cash reserves, how much margin trading occurs on its platform, or even how much of its BNB token it has on its books. Nevertheless, it claims to have processed over $22 trillion worth of transactions over the past 12 months.
Reuters’ analysis of CryptoCompare data estimates that Binance earned approximately $4.6 billion in spot trading fees plus $6.4 billion in fees on its derivative trading platforms. However, those figures will remain rough estimates without a full financial disclosure from Binance. Despite CZ’s claims, transparent disclosure is not forthcoming.
It’s important to note that CZ does have a history of thumbing his nose at regulators and Binance’s history is littered with media reports of lax know-your-customer (KYC) and anti-money-laundering (AML) protocols. Reuters previously optuženi Binance of creating Binance.US to enter the American market without exposing Binance.com to domestic scrutiny. Reuters has also accused the exchange of enabling money laundering and skirting sanctions.