Once upon a time, in the enchanted world of cryptocurrencies, Binance.US embarked on its journey with a dazzling display of trading prowess.
Innocent Inception, or So It Seemed
The Wall Street Journal stumbled upon a curious revelation. During Binance.US’s grand opening in 2019, a staggering $70,000 worth of Bitcoin traded hands within the first hour. Quite the entrance, you may say. However, behind closed doors, the wily Binance CEO, Changpeng Zhao, dropped a sly remark: “That was ourself, I think.” A stroke of self-engagement, was it?
The SEC Steps In
Ah, the U.S. Securities and Exchange Commission (SEC) couldn’t resist to join. With accusations swirling around wash trading, the SEC pointed fingers at Binance.US. It seems they suspected some intriguing handshakes happening between Zhao’s ventures and executive accounts, with 70% of a cryptocurrency’s trading volume allegedly under their spell. Magical, isn’t it?
Now, brace yourselves for the comical twist! The SEC claims that Binance.US was no good at watching over its own mischief until February 2022. Executives exchanged memos with reassuring words like “no action will be taken” on self-trading unless pesky regulators get in the way. Who needs surveillance when you have a magic cloak of invisibility?
When Stats Speak Louder
The Wall Street Journal, armed with its mystical 2019 study, discovered a grand revelation about Binance’s global arm. They estimated a whopping 46% of trading volume to be tainted with wash trading enchantments. Sadly, the study didn’t cast its eye on Binance’s U.S. arm, as it was still cloaked in mystery.
Denials and Deflections – The Witch’s Brew
Binance was quick to conjure its counterarguments. Denying any involvement in such sorcery, they claimed the SEC’s allegations were nothing but ill-conceived illusions. A spokesperson confidently declared that the “self-engaging” trades were but “entirely legitimate interactions.” Ah, the wonders of wordplay!
Read more: The Sec vs Ethereum rodeo; security edition
The Unseen Hand Behind the Curtain
Amidst all the uproar, the elusive Binance CEO, Changpeng Zhao, chose to remain hidden in the shadows. Oh, but beware! He slyly reposted an article about FUD (Fear, Uncertainty, and Doubt) when the Wall Street Journal’s piece hit the streets. A master of mystery indeed!
Playing the Victim Card
Binance lamented the mainstream news sources’ unkind tales of executive departures, intercompany transactions, and suspicious ties to faraway lands. They insisted it was merely the burden of being the biggest crypto exchange in town. The envy of others, perhaps?
So, dear readers, as the curtain falls on this act of crypto capers, the question remains: are these enchanted “self-engaging” trades a clever ruse or a magical misunderstanding? Only time will tell in this whimsical world of Binance.US!
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