Binance, the beloved poster child of the crypto space has come increasingly under the regulatory microscope since the FTX collapse.
Detractors in the past claimed the company is being led by a “walking time bomb” and now, a top former SEC official is warning customers to “get out” of the exchange “now.”
Former SEC Chief Of Internet Enforcement Body Slams Binance
Binance’s global business practices have come under scrutiny in recent months, as have several other top crypto firms, including Coinbase, Kraken, and more. However, none are catching the attention of John Reed Stark, former chief of the SEC Office of Internet Enforcement, quite the same way.
Stark spent 18 years as an attorney with the US Securities and Exchange Commission. His scope covered everything from hacks to market manipulation to insider trading and fraud. In a concurrent role, Stark also spent time shaping regulatory policies around emerging technologies.
Now he has his sights set on Binance in his latest tweet. Stark no longer works for the SEC, but as a former chief official of the top US regulator, his words cut deep. His biggest warning to customers, is “get out (now).”
Binance Coin and its growth over the years | BNBUSD on TradingView.com
A Long List of Alleged “Red Flags”
Stark has tweeted a novel’s worth of “red flags” he has found related to Binance. The list includes a slew of allegations, “mystery” surrounding the company’s headquarters, possible charges of criminal misconduct, and much more.
Binance customers aren’t heeding the warning, however. The cryptocurrency exchange is still number one in terms of daily trading volume. Volume is nearly four times as much as its nearest competitor, highlighting the substantial reach the company has.
If there ever were issues at Binance that resulted in an FTX-like disaster, there would be far more casualties. In the meantime, despite regulators putting the company and its executives in their crosshairs, they remain among the most trusted names in the crypto community.
Is John Reed Stark wrong about his wanting to Binance customers? Tell us on Twitter.
Binance's future is in jeopardy, at least that's my opinion. Having worked as a lawyer in the SEC Enforcement Division for 18 years, I was trained to spot red flags. When I read about Binance, I see a lot of red flags.
Lack of Reliable, Trustworthy Information
Just consider… pic.twitter.com/hXFahhwZuo
— John Reed Stark (@JohnReedStark) May 2, 2023