portspa.blogg.se

users.īinance customers shouldn’t “need a forensic accountant to find where their money is.” John Reed Stark, a former chief of the Securities and Exchange Commission’s Office of Internet Enforcement

Binance responded in a blog that it blocks U.S. Commodity Futures Trading Commission alleged in a complaint against the exchange in March. customers to trade on its platform from 2019 to this year despite publicly claiming to restrict access to Americans, the U.S. “Their business models tend to be built on taking customer funds, commingling it,” he told an event in May. The SEC has this year launched a crackdown on a string of crypto firms, but has not targeted Binance with any direct enforcement action.īinance allowed U.S. customers are not complying with laws requiring registered broker-dealers to safeguard client money by separating it from corporate assets. SEC chair Gary Gensler has said that many crypto exchanges offering securities to U.S. Reuters found no evidence that Binance client monies were lost or taken. Binance customers shouldn’t “need a forensic accountant to find where their money is,” said John Reed Stark, a former chief of the Securities and Exchange Commission’s Office of Internet Enforcement. They said the commingling of these funds put client assets at risk by obscuring their whereabouts. The money flows at Binance described by Reuters indicate a lack of internal controls to ensure customer funds were clearly identifiable and segregated from company revenues, three former U.S. 10, 2021, Binance mixed $20 million from a corporate account with $15 million from an account that received customer money. But the news agency reviewed a bank record showing that on Feb. Reuters couldn’t independently verify the figures or the frequency. One of the sources, a person with direct knowledge of Binance’s group finances, said the sums ran into billions of dollars and commingling happened almost daily in accounts the exchange held at U.S. financial rules that require customer money to be kept separate, three sources familiar with the matter told Reuters. The world’s largest cryptocurrency exchange, Binance, commingled customer funds with company revenue in 20, in breach of U.S.