The largest cryptocurrency exchange, Binance, was referred to as a Ponzi scheme by Cinneamhain Ventures’ CEO Adam Cochran on Twitter.
Adam Cochran, CEO of Cinneamhain Ventures, claims that Binance is a “Ponzi” scheme with a “hole across multiple assets.” Comparing the exchange to FTX, he says that even though all funds haven’t yet disappeared, customers shouldn’t be made to foot the bills for CEO Changpeng Zhao’s mistakes.
What is the Issue?
According to a screenshot Cochran uploaded, on June 29, the exchange introduced free trading pairs for BCH/TUSD and CFX/TUSD. He opines that the modification was made by Binance in order to make users continue publishing BCH. This creates the impression that they are supporting the volume with Sun’s unbacked shell company coin.
Additionally, the CTFC is suing Binance. One of the main claims in the Binance lawsuit is that the exchange purposefully attempted to get around US laws by allowing American customers to make illicit transactions . They do these using VPNs and other methods that disguised their whereabouts.
The CFTC lawsuit claims that the platform hasn’t done enough to prevent possible money laundering and other offences.
Binance Executives Are Departing
A greater focus is being placed on Binance by law enforcement agencies, including the SEC and the US Department of Justice. For allegedly failing to put measures in place to prevent money laundering, the company and its CEO, Changpeng Zhao, are the subject of investigations.
Additionally, Binance’s issues have gotten worse as a result of the departure of multiple significant executives. A senior vice president for compliance has left. Also, the general counsel, the head of investigations, the chief strategy officer, and more are among the departed. Is the accusation by the CEO of Cinneamhain Ventures real? Only time will tell?
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