Binance says it’s ‘different’ from other exchanges amid SEC lawsuit

On June 7, cryptocurrency exchange Binance published a statement on its Chinese social channels with the hashtag #StrongTogether. Amid ongoing litigation with the United States Securities and Exchange Commission (SEC), Binance said its wallet addresses are transparent and that the exchange never “siphoned consumers’ funds” nor has “any collateralized borrowings.”

Additionally, Binance said it never gave “large donations” to political candidates nor made “large sponsorships” to entertainment and media entities. A translated version of the exchange’s message said:

“Our community comes from many different races, ethnicities, and beliefs; we will continue to BUILD for our users and stand up for the industry. We are different than ___. We are Binance.”

Though Binance did not specifically name the cryptocurrency exchange it is trying to differentiate from, troubled cryptocurrency exchange FTX has been accused of mismanaging consumers’ assets and lending money to its sister hedge fund Alameda Research.

The exchange founder, Sam Bankman-Fried, is currently under house arrest awaiting trial on wire fraud charges. Bankman-Fried was the second-largest donor to the U.S. Democratic Party between 2020 and 2022 — alleging doing so by giving away clients’ assets. 

In addition, FTX was formerly the $135 million sponsor of the Miami Heat arena. The exchange is undergoing bankruptcy proceedings, with an estimated balance sheet gap of $8 billion, and owing an estimated $44 billion to the U.S. Internal Revenue Service through its subsidiaries. 

On June 5, the SEC sued Binance, alleging the sale of unregistered securities to U.S. users and operating an unregistered exchange in the U.S. The lawsuit accused Binance of “commingling” and “diverting” investors’ crypto and fiat funds. Data compiled by blockchain analytics firm Nansen currently shows Binance has a net worth of $59 billion. 

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