Reuters Says Binance Commingled Funds, But Is It Just More FUD?

The Breakdown

Blockworks

Investing, Business

4.8 • 806 Ratings

🗓️ 23 May 2023

⏱️ 14 minutes

🔗️ Recording | iTunes | RSS

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Summary

After FTX, the industry's guard is up when it comes to exchanges behaving badly. Reuters today published a piece saying that Binance had commingled user funds in 2020 and 2021. Binance strenuously denied the claims and called it just more FUD. Who has the right of it? The show also covers an update in the DCG case. Enjoying this content? SUBSCRIBE to the Podcast: https://pod.link/1438693620 Watch on YouTube: https://www.youtube.com/nathanielwhittemorecrypto Subscribeto the newsletter: https://breakdown.beehiiv.com/ Join the discussion: https://discord.gg/VrKRrfKCz8 Follow on Twitter: NLW: https://twitter.com/nlw Breakdown: https://twitter.com/BreakdownNLW

Transcript

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0:00.0	Welcome back to The Breakdown with me, NLW.
0:09.3	It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.
0:18.3	What's going on, guys? It is Tuesday, May 23rd, and today we are catching up on a report that
0:24.3	Binance was co-mingling customer funds. Before we get into that, if you are enjoying the
0:29.9	breakdown, please go subscribe to it, give it a rating, give it a review, or if you want to dive
0:33.7	deeper into the conversation, come join us on the Breakers Discord. You can find a link
0:37.9	at the show notes or go to bit.ly slash breakdown pod. Hello friends. Well, this morning as I was
0:43.6	prepping the show, news broke from Reuters. Walter Bloomberg on Twitter said,
0:48.7	the world's largest cryptocurrency exchange, Binance, co-mingled customer funds with company revenue
0:53.7	in 2020 and 2021.
0:56.1	In breach of U.S. financial rules that require customer money to be keep separate, three
1:00.2	sources familiar with the matter told Reuters.
1:03.0	So let's go through this.
1:04.6	Let's try to get a sense of how serious this is.
1:06.9	Let's see if there is another Sam-type situation on our hands.
1:10.9	First, let's talk the accusation.
1:12.9	Well, it's pretty much right there in the headline,
1:14.6	Binance commingling customer funds with company revenue in 2020 and 2021.
1:18.7	The sourcing, three sources familiar with the matter and Reuters.
1:22.1	But let's try to get a few more details.
1:24.2	From the Reuters piece, quote,
1:25.8	one of the sources, a person with direct knowledge of
	...

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