Binance been caught with their hands in the cookie Jar (apparently)

franky1

legendary

Activity: 4410

Merit: 4766

Quote from: DapanasFruit on February 16, 2022, 11:02:12 PM

I am not good in legal matters but what I know is that if a firm is not disclosing relationships with third parties and those third parties are somehow doing some trading under your platform, then surely there is some legal problems in there.

its not about them not disclosing partnerships.
its that the partners are infact themselves. trading within their own platform (as both customer and service) which has prompted an investigation into possible 'insider trading'

EG if left arm tells right arm that they are going to clap their hands. together they can make alot of noise(profit) knowing when to clap together
   [exchange]
   / | \
[pfm] [pfm] [pfm]
  / \ / \ / \
[c] [c] [c] [c] [c] [c]
normally an exchange doesnt know what a portfolio manager[pfm] is about to do on a market in 1seconds time
normally a portfolio manager[pfm] doesnt know what a customer[c] is about to request in 1seconds time

but what if
   [exchange] -- [pfm]
   / |
[pfm] [pfm]
  / \ / \
[c] [c] [c] [c]
exchange and pfm are the same 'entity' and have no real customers in that branch/arm

DapanasFruit

member

Activity: 1218

Merit: 49

Binance #Smart World Global Token

I am not good in legal matters but what I know is that if a firm is not disclosing relationships with third parties and those third parties are somehow doing some trading under your platform, then surely there is some legal problems in there. I am glad that Binance is cooperating because not doing so can put them in more trouble. Most likely there can be some penalties to be paid by Binance when the investigation can wind up...and it has no choice but to abide if it wants to continued doing business in the big USA market. On the other hand, with this development expect Binance to be always following the lead of the government and cooperating on everything the government demands even if it means sacrificing the privacy and rights of their users.

cabron

hero member

Activity: 2800

Merit: 595

https://www.betcoin.ag

Afaik you are allowed to post links. Maybe quoting the link will do because you are a newbie.

There are lots of news media covering the investigation already which is related to the firms such as Sigma Chain AG and Merit Peak Ltd. They are investigating Binance.US and affiliates for illicit transactions of US users. Binance is always been cooperating with lots of investigations so they could continue making thier business, I guess because the SEC requests access to data then Binance will provide.

https://markets.businessinsider.com/news/currencies/binance-sec-crypto-exchange-changpeng-zhao-probe-investigation-trading-affliates-2022-2
https://cointelegraph.com/news/binance-us-is-under-investigation-from-sec-over-trading-affiliates-report

Bitemetwice @ Stake

newbie

Activity: 14

Merit: 0

Binance been caught with their hands in the cookie Jar (apparently) :

I'm not usually Right But I might be wrong this time

The SEC has opened a probe into the
relationship between “the U.S. arm of Binance,
the world’s largest cryptocurrency exchange, and two trading firms
with ties to Binance’s founder.”
Those firms “act as market makers that trade cryptocurrencies”
on the Binance exchange, and regulators have concerns
over the nature of Binance’s disclosures to its customers about its links to those firms

I have a link to the story, but not sure if allowed to post or not?

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