• Binance published a statement on its Chinese social channels, stressing that the exchange never “siphoned consumers’ funds” nor have “any collateralized borrowings.”
• The US Securities and Exchange Commission has sued Binance for allegedly selling unregistered securities to US users and operating an unregistered exchange in the US.
• FTX is accused of mismanaging consumers’ assets and lending money to its sister hedge fund Alameda Research. Founder Sam Bankman-Fried is under house arrest awaiting trial on wire fraud charges.
Binance Statement
Binance published a statement on its Chinese social channels with the hashtag #StrongTogether, stressing that the exchange never “siphoned consumers’ funds” nor have “any collateralized borrowings.” Additionally, Binance said it never gave “large donations” to political candidates nor made “large sponsorships” to entertainment and media entities.
SEC Lawsuit
On June 5, the SEC sued Binance, alleging the sale of unregistered securities to U.S. users and operating an unregistered exchange in the United States. 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.
FTX’s Troubles
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 Miami Heat’s arena undergoing bankruptcy proceedings with an estimated balance sheet gap of $8 billion owing an estimated $44 billion to the U.S Internal Revenue Service through its subsidiaries.
“We are Different”
Amid ongoing litigation with the United States Securities and Exchange Commission, Binance said that they are different than other exchanges: “Our community comes from many different races, ethnicities, and beliefs; we will continue to BUILD for our users and stand up for the industry.”
Conclusion
Binance stressed their commitment towards their users despite ongoing lawsuits with SEC while FTX is facing financial trouble due to mismanaged consumer assets as well as legal action against its founder Sam Bankman-Fried who allegedly gave away client assets as political donations