On June 7, cryptocurrency exchange Binance posted a statement on its Chinese-language social channels with the hashtag #StrongTogether. In its ongoing lawsuit with the SEC, Binance said its wallet addresses are transparent and that the exchange never "stealed funds from consumers" nor did it have "any collateralized borrowing."
Additionally, Binance stated that it has never provided “significant donations” to political candidates, or “significant sponsorships” to entertainment and media entities. A translated version of the exchange message said: “Our community comes from many different races, national ities and creeds; We will continue to build for our users and stand up for the industry. We are different from. We are Binance.”
While Binance did not specifically name the cryptocurrency exchange it was trying to differentiate from, embattled cryptocurrency exchange FTX has been accused of mismanaging consumer assets and lending money to its sister hedge fund, Alameda Research. Exchange founder Sam Ban Kman-Fried is currently under house arrest awaiting trial on wire fraud charges. Bankman-Fried is the second-largest donor to the US Democratic Party between 2020 and 2022 claiming to do so by donating assets from clients.
Additionally, FTX was previously a $135 million sponsor of the Miami Heat's home stadium. The exchange is in bankruptcy proceedings with an estimated $8 billion shortcut in its balance sheet and owes the IRS $44 billion through its subsidiaries.
On June 5, the SEC sued Binance, accusing it of selling unregistered securities to US users and operating an unregistered exchange in the United States. The lawsuit accuses Binance of “mixing” and “moving” investors' cryptocurrency and fiat funds. Data compile ed by blockchain analytics firm Nansen currently shows Binance's net worth at $59 billion.
