Binance, one of the world’s largest cryptocurrency exchanges by trading volume, has been in the news a lot lately. The Malta-based company has been embroiled in controversy over its alleged involvement in money laundering and terrorist financing, as well as accusations of insider trading.
Binance has denied all of these allegations, but the damage has been done. The exchange’s reputation has been tarnished, and many users are now wondering if it’s still safe to use.
So, what is the issue with Binance? Let’s take a look.
The first issue is that Binance may have been involved in money laundering and terrorist financing. In October 2018, Bloomberg published an investigation alleging that Binance had allowed criminals to launder money through its platform.
The report claimed that Binance had Know-Your-Customer (KYC) and Anti-Money Laundering (AML) compliance issues, which allowed bad actors to use the platform to launder money. Binance denied these allegations, saying that it takes compliance “very seriously.”
However, the Bloomberg report raised concerns among users about the safety of their funds on Binance. If the exchange was indeed allowing criminals to launder money through its platform, then user funds could be at risk.
Binance is one of the world’s leading cryptocurrency exchanges, but there have been several security concerns raised about it recently. It is important to note that Binance has not been hacked and that user funds remain safe. However, there have been reports of phishing attacks and other fraudulent activities on the platform. Additionally, there have been reports of unauthorized access to user accounts and other suspicious activity. As such, it is important to take extra precaution when using Binance and ensure that you are following all safety protocols when trading on the platform.
The second issue is that Binance may have insider trading issues. In March 2018, it was revealed that Binance had listed a coin called “VIA” without disclosing that it had an ownership stake in the project.
This led to accusations of insider trading, as it appeared that Binance had used its position to pump up the price of the coin before listing it on its exchange.
Binance denied these accusations, saying that it didn’t disclose its ownership stake because it didn’t want to “influence” the market. However, the damage was done, and many users lost faith in Binance after this incident.
The third issue is that Binance may have been hacked in May 2019. On May 7th, 2019, a post on Reddit claimed that someone had hacked into a Binance account and stolen 7,000 Bitcoin (BTC).
The post included screenshots of what appeared to be transaction history showing large withdrawals from the account.
Binance denied that it had been hacked, saying that the screenshots were fake and that no user funds were at risk. However, many users were skeptical of this claim, especially given the other issues mentioned above.
So, what is the issue with Binance? There are several issues: allegations of money laundering and terrorist financing; accusations of insider trading; and skepticism over its claims that it wasn’t hacked in May 2019. All of these issues have led to a loss of trust in Binance among users and investors.