Former SEC official suggests people not use Binance crypto exchange
John Reed Stark shared many negative points about the Binance exchange and suggested people exit from this exchange.
Binance is a first-ranked crypto exchange, thanks to secured & transparent services. Binance provides crypto services via centralized as well as decentralized platforms. In late March of this year, the US CFTC body sued the Binance exchange over a lack of cooperation with the regulatory bodies & unregistered derivatives trading services in the US jurisdiction.
On 2 May 2023, John Reed Stark, former chief of the United States Securities and Exchange Commission (SEC) Office of Internet Enforcement, took to Twitter to share his deep thoughts against the Binance crypto exchange.
The Former SEC official pointed out several negative points about Binance exchange e.g. Lack of reliability in Binance services, the reality of Proof of audits, CFTC charges, regulatory misappropriation, etc.
On the proof of audits, Stark explained that Binance’s proof of audit was not a fair detail to show the reserved funds behind the exchange because that information shows the financial stability of the exchange.
On the CFTC charges, Stark noted that CFTC charges alleged that Binance violated US regulations in 2018.
“The CFTC’s complaint alleges that, at least as far back as 2018, Binance encouraged customers and employees to evade U.S. regulations,” the former SEC official said.
Binance CSO Patrick Hillmann responded to the former SEC officials’ red flags and criticized him badly. According to Hillmann, all the facts shown by John Stark are based on TV & social media news.
Response against former SEC official’s tweet is showing that the majority of the people are in support of Binance. Few crypto Twitter users claimed that such people have time to talk against good companies, while they are failing to talk about FTX-like crypto exchanges.
Read also: TUSD stablecoin depegs, thanks to Binance’s BTC zero free trade services
