Binance is taking another PR blow as Reuters is reporting that the world’s largest crypto exchange has been commingling investor and company funds.
According to the report that was derived from a former company insider, “billions of dollars” and commingling happened on a daily basis. The allegations transgress existing securities law in the United States. Binance is already under investigation by the US Commodity Futures Trading Commission (CFTC) regarding allegations of numerous violations. Binance, which has been working furiously to improve its perception for global regulators, is a big target for agencies that believe all digital assets are securities.
The report does state that it found no evidence of lost funds – unlike the situation with other crypto platforms, like FTX, which is being prosecuted both criminally and civilly.
The commingling of funds is described as being indicative of a lack of internal controls, which could put customer funds at risk.