Binance Faces Regulatory Scrutiny Over FTX Involvement, Denies Wrongdoing

Binance Denies Intentional Malfeasance

Regulators from the United States, the United Kingdom, and Europe have sought answers from Binance about the collapse of FTX and clarifications on Binance’s involvement. Binance has denied claims of any intentional wrongdoing during the events.

The U.S. Department of Justice and other government agencies like the SEC and CFTC have reportedly contacted Binance officials about the company's involvement in the FTX collapse. A CoinDesk report from Nov. 10 says that government officials are seeking information in regard to what Binance executives knew about FTX’s internal functionality.

The U.K. Parliament’s Treasury Committee also summoned Binance to present its findings as a witness to the Committee’s probe into what happened. Binance submitted a five-page document on Nov. 15 detailing a timeline of events and gave conclusions as to why the exchange did not follow through on its letter of intent to buy FTX.

“Whilst Binance subsequently entered into a non-binding letter of intent in respect of a potential acquisition of FTX in the hope of protecting FTX’s users and the broader industry when contacted by FTX’s CEO, Binance’s financial due diligence on FTX and media reports of US regulatory investigations into the company for misuse of customer funds subsequently revealed insurmountable obstacles to proceeding with an acquisition,” the document reads.

European members of the G20 are also watching the industry closely and calling for stricter regulations. Last week, FTX had its only European license, in Cyprus, suspended.

What is Binance:

Binance positions itself as the world’s leading blockchain ecosystem and crypto-asset infrastructure provider with a financial product suite that includes the largest digital asset exchange by volume. The Binance platform aims to increase the freedom of money for users and features a comprehensive portfolio of crypto-asset products and offerings, including trading and finance, education, data and research, social good, investment and incubation, decentralization, and infrastructure solutions.

Where to find Binance:

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