Binance and its execs have routinely enounce they wo n’t fall out in the footsteps of Sam Bankman - Fried ’s fallacious crypto imperium , but they certainly are taking plays flat out of the failed crypto founder ’s playbook .
On Tuesday , Binanceannouncedit was cop up with the Chamber of Digital Commerce , itself a crypto trade association , to help with “ discussion with policymakers and regulators ” to develop regulations for the blockchain industry .
“ Such work is fundamental to our shared mission of fostering the sustainable development of sensible regulations for cryptocurrency and blockchain , which ultimately ensures protections for users , ” Binance ’s VP of Public Affairs Joanne Kubba say in the sacking .
Binance CEO Changpeng Zhao has repeatedly spread the message that his exchange and company are both financially stable, but critics point out the company is too opaque to get a good picture of its finances.Photo: Marco Rosi - SS Lazio (Getty Images)
If this is starting to vocalise like deja vu , it ’s because before it imploded , declare bankruptcy , and multiple impostor investigations were launch against its EXEC , FTX was similarly situated as one of the leading voices for blockchain regulation . FTX founder and CEO Sam Bankman - Fried , who will soon becoming back to the U.S.to facefederal chargesof fraud and violating effort finance laws , had donated lavishly tomembers of both company . Before the roof fall on his head , Bankman - Fried was pushing for abill chair by Senators Debbie Stabenow and John Boozmanthat would give more regulatory business leader to the Commodity Futures Trading Commission .
The Chamber also scarper apolitical action at law committeethat has spent a small over $ 15,500 as of Nov. 28 . That is a paltry sum compared to what Bankman - Fried was putting out , but it is a step toward even more crypto cash fall down into politico ’s hands .
Binance and Zhao , who often cash in one’s chips by CZ , havemade statementsabout the penury forsome crypto regulation , though his newfound willingness to directly enter regulatory proceedings coincides with other news that name it seem like Binance wants to fulfill FTX ’s decrepit shoes . On Monday , failed crypto company Voyagerannouncedit plan to betray its stay assets , AKA old client accounts , evaluate at a footling over $ 1 billion over to Binance . US , the company ’s U.S.-centered branch . Voyagerdeclared bankruptcyearlier this year , and Brian Shroder , Binance . US ’s CEO , wrote“our end is unsubdivided : retort users their cryptocurrency on the fastest timeline . ”
However , Forbesnoted only about $ 20 million of the buyout would go to the failure estate . It ’s a very similar deal that FTX ’s U.S. branch made with Voyager earlier this year , where the now - dead interchange promise $ 50 million in exchange for $ 1.422 billion in crypto .
The entire amount Binance is unforced to devote is of import , peculiarly considering when CNBC asked Binance CEO Changpeng Zhao if his interchange could suffer a $ 2.1 billion bang if those treat the FTX failure endeavor to claw back an other investment , Zhao only repeat “ we are financially strong . ” The company that had impart a selective “ proof - of - reserves ” audit for Binance backed out of any crypto - centric audit after being criticise for how little these reports in reality showed of different crypto firm ’ fiscal state . CZ enjoin on Monday his troupe was “ consistently profitable . ”
I tweeted a few times in the past .
Binance is not a net maximizing organization . As such , we are also not a shareholder economic value maximize organization .
But we are consistently profitable , just but sufficiently .
— CZ 🔶 BNB ( @cz_binance)December 19 , 2022
Crypto bros retweeted by Zhao have tried to claim that “ comparing Binance to FTX is ridiculous ” while citing Binance ’s reserves . The job is , Binance has resisted doing a full audited account of its fellowship like rival Coinbase has , which would look at other liability rather than just analyze if Binance has a full shote bank . Op - edspublished by the likes of CoinDesk mention how Zhao ’s answers have done little to quell anxieties about the troupe .
The company ’s opacity was note in alarge Reuters reportMonday . Binance does not list an official military headquarters , meaning it rarely , if ever , discloses financial information that other public companies on a regular basis do such as its liabilities , costs , and gross . Though Binance is a private company , the Reuters theme noted it psychoanalyze filing in the 14 jurisdictions the society claims it is registered , and observe there was “ scant entropy ” pointing to just how well the party is doing . The company has made it percipient that most of its revenue follow from dealing fees , and Zhao himself has claimed they do not have any speculation capital investment and they do n’t owe “ anybody any money . ”
That ’s not to say FTX ’s stated “ transparence ” did anything to stop the exchange from funnel billions of dollar mark in user ’s crypto to hedge fund Alameda Research , which has led to all these Union heraldic bearing . Still , Binance is currentlyunder Union investigationfor money launder andviolating indorsement . So in that manner , the two exchanges may have quite a lot in common .
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