Binance Accused Of Commingling Customer Funds
Several months after suing Binance for “illegal” trade and a “sham” compliance programme, US officials appear to be stirring up more trouble for the biggest cryptocurrency exchange platform.
In violation of US financial regulations that demand businesses to keep consumer payments and company earnings separate, according to a Reuters article, Binance allegedly mixed the two in 2020 and 2021.
Commingling, to put it simply, is the mixing of business and customer finances. This sector of funding is murky, making it challenging for outsiders to determine whether a company is healthy or not. Commingling is forbidden for businesses under US law. If a firm is proven to be commingling, liability protection may be lost, and creditors may be allowed to pursue personal assets.
However, Binance has denied commingling allegations, calling the Reuters report “weak”. The company said that there was no commingling of funds, adding that it was “100 percent corporate funds”.
(With inputs from Shikha Singh)
You need to login in order to Like
