SEC Lawyer Warns That Binance is an "FTX Redux"
By : Benzinga
Published On: 2023-03-10
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A former attorney for the US Securities and Exchange Commission, John Reed Stark, claimed in a tweet earlier this week that Binance is an “FTX redux.” The statement follows a Forbes report alleging that Binance is “asset shuffling” in a manner that is “eerily similar” to the events leading up to the collapse of now-defunct FTX. Binance moved $1.8 million of collateral meant to back customers’ stablecoins for use that is undisclosed. Binance CEO Changpeng Zhao denies the allegations. Tweets from CEO Changpeng Zhao in November triggered a series of events that concluded in FTX’s downfall. In his tweet, Stark stated that the world’s largest crypto exchange in terms of volume is a “shadow bank” that is “minting their own counterfeit currency.”
