Binance Faces Multiple Scandals, Threatening Its Reputation
Date: 2023-10-14 Author: Dima Zakharov Categories: CRYPTO PAYMENTS
Binance's Controversial Week
Popular analyst Colin Wu has brought attention to the fact that Binance, a prominent cryptocurrency exchange, has been at the center of several scandals this week. Reports about this trading platform have been consistently hitting the press, and unfortunately for Binance, they've mostly been unfavorable, raising concerns about the credibility of this major centralized exchange (CEX) for digital assets.
Israeli Police Freeze Cryptocurrency Accounts Linked to Palestinian Organization
It has been revealed that the Israeli police froze cryptocurrency accounts associated with a well-known Palestinian organization, which was involved in the recent conflict in the Middle East. The Lahav 433 police division of Israel, in collaboration with the Ministry of Defense, intelligence agencies, and the Binance trading platform, took action by locking down suspicious accounts. The seized funds will be transferred to the state treasury.
Brazilian Congressional Committee Recommends Legal Action Against Binance Executives
In a separate development, a congressional committee in Brazil recommended taking legal action against several high-ranking officials at Binance. This list includes Changpeng Zhao (CZ), the company's CEO, and three local entrepreneurs. They all face charges related to fraud, unlicensed securities issuance and trading, and operating an organization without proper regulatory approvals in the Latin American country.
The committee has also urged the Federal Prosecutor's Office to investigate Binance Capital Management's compliance with tax requirements. Additionally, the Brazilian Securities and Exchange Commission (CVM) may launch an investigation into Binance's derivatives trading activities.
Changpeng Zhao's Crypto Industry Recovery Initiative Falls Short
Lastly, Bloomberg journalists reported that Changpeng Zhao's plan to aid cryptocurrency companies has faltered. Following the bankruptcy of the FTX exchange, Zhao launched the "Industry Recovery Initiative" (IRI) with the goal of raising at least $1 billion to fund promising industry startups.
Analysis of public wallets associated with this project revealed that less than $30 million has been used since the inception of the fund. Earlier, representatives from Binance claimed that the IRI had funded 14 projects; however, they did not disclose the names of these startups.
