Binance US Refutes Comparisons to Fraudulent Crypto Exchanges, Denies Secret Access Allegations
- Binance US denies comparisons to fraudulent exchanges and assures customers that their funds are safe.
- Binance US leadership team is composed of former US government officials.
- The exchange maintains 1:1 reserves and is subject to regular audits and regulatory reporting.
Binance US, a US-based cryptocurrency trading platform affiliated with global crypto exchange Binance, has denied reports that draw comparisons between it and fraudulent and bankrupt crypto exchanges. In a statement released Thursday, Binance US refuted the allegations and emphasized that only its employees have access to its bank accounts.
The exchange also addressed a recent Reuters report claiming Binance had “secret access” to a bank account belonging to its purportedly independent US partner. Binance US denied the allegations, stating that its leadership team is comprised of former employees of the US Department of Justice, Securities and Exchange Commission, Federal Bureau of Investigation, and the Federal Reserve Bank of New York, all committed to operating a platform that is safe and complies with US laws and regulations.
Binance US further clarified that a market-making firm named Merit Peak had operated on its platform but stopped all activity in 2021. The exchange assured customers it does not use their funds, maintaining 1:1 reserves and subject to regular audits and regulatory reporting by government entities.
The Securities and Exchange Commission has recently taken action against several firms in the crypto sector, including Kraken over its staking program, Paxos over its stablecoin Binance USD issuance, and Terraform Labs for defrauding investors. Last week, SEC Chairman Gary Gensler proposed amending federal custody rules to cover all crypto assets.
Binance US is a separate entity from Binance, with different management teams. The exchange prioritizes transparency and compliance as it seeks to provide a safe and reliable platform for crypto traders.
