{"id":12687,"date":"2023-05-23T13:29:22","date_gmt":"2023-05-23T17:29:22","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/binance-denies-reuters-report-that-it-commingled-customer-funds\/"},"modified":"2023-05-23T13:29:23","modified_gmt":"2023-05-23T17:29:23","slug":"binance-denies-reuters-report-that-it-commingled-customer-funds","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=12687","title":{"rendered":"Binance Denies Reuters Report That It Commingled Customer Funds"},"content":{"rendered":"
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Binance is pushing back against a Reuters report that said the world\u2019s largest cryptocurrency exchange commingled customer funds with company revenue in 2020 and 2021.\u00a0<\/p>\n

Binance Chief Communications Officer Patrick Hillmann called the story \u201cweak,\u201d in a five paragraph tweet on Tuesday.<\/p>\n

\u201cThis story is so weak that they had to put up front, \u2018Reuters found no evidence that Binance client monies were lost or taken\u2019 in a transparent attempt to protect themselves from a libel suit,\u201d Hillmann said. \u201cUnderneath that, they then pinned 1000 words of conspiracy theories (which we explained were false) with zero evidence other than a \u201cformer insider.\u201d<\/p>\n

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Reuters said that the exchange commingled customer funds with company revenue in 2020 and 2021, citing sources familiar with the situation.\u00a0<\/p>\n

\u201c… the news agency reviewed a bank record showing that on Feb. 10, 2021, Binance mixed $20 million from a corporate account with $15 million from an account that received customer money,\u201d Reuters reported.<\/p>\n

Reuters did not immediately respond to a request for comment.<\/p>\n

US regulators\u2019 allegations against Binance\u00a0<\/h2>\n

Binance was accused<\/u> by the US Commodity Futures Trading Commission in March of allowing trading firms based in the US to trade crypto derivatives on Binance\u2019s international exchange.\u00a0<\/p>\n

In a 74-age complaint<\/u>, the CFTC said some of Binance\u2019s entities had \u201ccommingled funds.\u201d<\/p>\n

The regulator also said CEO Changpeng Zhao had directed employees and customers to circumvent compliance controls in order to maximize corporate profits.\u201d<\/p>\n

The CFTC also said in its lawsuit that Binance had given some of its largest VIP clients advantages through faster trade execution.\u00a0<\/p>\n

Zhao, also known as CZ, had called the CFTC complaint \u201cunexpected and disappointing,\u201d in a post<\/u>.\u00a0<\/p>\n

\u201cUpon an initial review, the complaint appears to contain an incomplete recitation of facts, and we do not agree with the characterization of many of the issues alleged in the complaint,\u201d CZ said.<\/p>\n<\/p><\/div>\n