Mysterious $22 trillion trades. According to an analysis of Binance company documents by Reuters, the key to the growth of the crypto empire – the large exchange Binance (.) com – has made transactions worth more than $ 22 trillion dollars this year. However, details about them are often hidden from the public. Concerns about Binance are growing
Binance, which is considered as the largest cryptocurrency exchange in the world, seems to be facing a problem of trust due to the decrease in the value of its national token, BNB, and the increase in the number of users.
However, the exchange said that due to its strong financial situation, it was able to manage a loss of $ 6 billion in 72 hours last week without “breaking the water”.
However, in addition to publicly hidden information about its $22 trillion business this year, Binance refused to disclose its status or that of Binance.com, according to Reuters. It also records basic financial data, including revenue, profit and available funds.
The crypto company is also very clear about its BNB token and its impact on the exchange rate. According to Binance, customers can borrow money to trade in stocks and get loans of their crypto assets. But, according to the analysis, the amount of these bets, the degree of exposure of Binance to this risk, or the amount of money that the company has set aside to cover the withdrawal is not considered in detail. Speaking about the many jurisdictions where Binance operates, John Reed Stark, former head of the US SEC’s Office of Internet Enforcement, says that,
They combine the selection of rules to create a realistic scenario. There is no full understanding, no sunlight, no confirmation of any kind in his financial situation. He went on to say that Binance’s services cover a deeper level than FTX’s trading relationships.
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Binance Faces Legal Issues
Since Binance has more than half of all trading volume in the cryptocurrency market, US users are especially interested in how it does business. According to Reuters, some prosecutors believe they have enough evidence to indict Binance and some of its executives.
He is being investigated by the United States Department of Justice for money laundering and corruption.