The crypto company Binance has been seeing red for a few days. While it is particularly scrutinized by regulators, the situation of the exchange is going from bad to worse. Recent calls from a former SEC official are likely to make the company’s situation worse.
John Reed Stark calls for getting out of Binance now!
Recently, it was demonstrated that the Binance crypto exchange platform is unsuccessfully looking for a stable banking partner. Today, we wonder if the platform would maintain its partnerships after the statements of John Reed Stark.
Tuesday, May 2, this former executive of the Securities and Exchange Commission (SEC) came down hard on the crypto platform. And we can say that the former manager gave no quarter since he called on users to abandon the exchange.
This call would be a warning to his last according to him. A red alert based on the man’s 18 years of experience as a lawyer specializing in the financial markets.
Obviously, the expert would have many grievances against Binance. His reprobations are linked to many blurs and inconsistencies that he identified on the company. According to him, there would be a great “mystery” around the effective head office of the company.
Added to this is an already arm’s length list of allegations of criminal misconduct. A notion that can imply in particular acts of fraud, embezzlement, money laundering, among others.
What echo among users?
It must be said that Stark did not specify the exact extent of his suspicions against the company. It is also not certain that his opinion will be taken into account by users. Because, the least we can say about Binance is that it enjoys the trust of the latter. For how much longer? The answer is not settled.
What can be said on the other hand is that the notoriety of Binance is not a fixed asset which it can prevail for a long time. One can even imagine that the company is aware of its loss of credibility.
Not long ago, Tigran Gambaryan, Binance’s financial crime compliance officer, spoke out. He praised Binance’s efforts to shore up the platform’s security features.
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