Although Binance did not name the entity it was trying to differentiate from, evidence suggest that it is troubled crypto exchange FTX.
On June 7, cryptocurrency exchange Binance published a statement on its Chinese social channels with the hashtag #StrongTogether. Amid ongoing litigation with the United States Securities and Exchange Commission, Binance said its wallet addresses are transparent and that the exchange never “siphoned consumers’ funds” nor has “any collateralized borrowings.”
Additionally, Binance said it never gave “large donations” to political candidates nor made “large sponsorships” to entertainment and media entities. A translated version of the exchange’s message said: “Our community comes from many different races, ethnicities, and beliefs; we will continue to BUILD for our users and stand up for the industry. We are different than ___. We are Binance.”
Though Binance did not specifically name the cryptocurrency exchange it is trying to differentiate from, troubled cryptocurrency exchange FTX has been accused of mismanaging consumers’ assets and lending money to its sister hedge fund Alameda Research. The exchange founder, Sam Bankman-Fried, is currently under house arrest awaiting trial on wire fraud charges. Bankman-Fried was the second-largest donor to the U.S. Democratic Party between 2020 and 2022 — alleging doing so by giving away clients’ assets.
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