Binance, the darling poster child of the crypto space, has come increasingly under a regulatory microscope since the collapse of FTX.
Critics have claimed in the past that the company is being led by a “ticking time bomb” and now, a former senior SEC official is warning clients to “exit” the exchange “now.”
Former SEC Head of Internet Enforcement Authority Criticizes Binance
Binance’s global business practices have come under scrutiny in recent months, as have many other major crypto companies, including Coinbase, Kraken, and more. However, no one catches the eye of John Reed Stark, former head of the SEC’s Bureau of Law Enforcement, in quite the same way.
Stark spent 18 years as an attorney with the US Securities and Exchange Commission. Its scope covered everything from hacks to market manipulation to insider trading and fraud. In a concurrent role, Stark has also spent time shaping regulatory policies around emerging technologies.
Now he has his sights set on Binance in his last tweet. Stark no longer works for the SEC, but as a former chief official of the United States’ top regulatory body, his words run deep. His biggest warning to clients is to “Get out (now)”.
Binance Coin and its growth over the years | BNBUSD on TradingView.com
Long list of alleged “red flags”.
Stark tweeted an account of the “red flags” he found associated with Binance. The list includes a plethora of allegations, “mysteries” surrounding the company’s headquarters, potential charges of criminal misconduct, and much more.
However, Binance customers did not respond to the warning. It remains the number one cryptocurrency exchange in terms of daily trading volume. The size is nearly four times that of its nearest competitor, which highlights the large reach the company has.
If there were issues on Binance that led to an FTX-like disaster, there would be more victims. Meanwhile, despite regulators putting the company and its executives in the crosshairs, they remain among the most trusted names in the crypto community.
Is John Red Stark Wrong About Wanting Binance Clients? Tell us on Twitter.
Binance’s future is in jeopardy, at least that’s my opinion. Having worked as an attorney in the SEC enforcement division for 18 years, I’m trained to spot red flags. When I read about Binance, I see a lot of red flags.
Lack of reliable and trustworthy information
Just keep in mind… pic.twitter.com/hXFahhwZuo
John ReedStark May 2, 2023