In Binance.US years, they refused to prevent fictitious trading
Date: 2023-07-25 Author: Karina Ziganova Categories: BUSINESS, IN WORLD
Global cryptocurrency exchange Binance has been spoofing about 46% of its total trading volume. Moreover, according to the Wall Street Journal, Binance.US officials knew from the start that the platform risked allowing fictitious trading.
Sources claim that one of the exchange's employees told the then CEO of the Binance.US, Catherine Coley, that a mechanism that matches trades could allow a trader to trade with himself.
"If any U.S. legislation or regulation says we have to prevent this, we will do it. Otherwise, we won't," the employee wrote in August 2019.
More than a year later, another top manager Binance.US said that the exchange does not have the resources to prevent fictitious trading. Another staff member confirmed this.
What the SEC says
At the same time, the US Securities and Exchange Commission (SEC) said that there was no surveillance of trading on the Binance.US until at least February 2022, and fictitious transactions between Sigma Chain accounts continued until at least June last year.
However, the SEC did not specify who made these transactions. The regulator said that several Binance employees conducted Sigma Chain operations under the leadership of Binance founder Changpeng Zhao. According to the Commission, the day after the launch of the platform in September 2019, fictitious transactions between Sigma Chain accounts and accounts owned by Zhao and senior employees accounted for almost 70% of the trading volume.
Who controlled the money Binance.US
Last month, reporters found out that the top manager of the cryptocurrency exchange Binance was the main operator of five bank accounts belonging to a supposedly independent American branch. We are talking about Guangying Cheng, a close ally of the head of Binance, Changpeng Zhao.
Moreover, the released documents showed that Binance directly controlled the Binance.US, despite statements about the independence of the latter. Details were revealed after the exchange became involved in a number of scandals in the United States.
