Former U.S. SEC official: Binance’s future is in jeopardy

Since FTX went bankrupt in November last year, the U.S. authorities have continuously escalated their supervision of cryptocurrencies, and the “big tree attracting wind” Binance has come under unprecedented scrutiny. John Reed Stark, a former lawyer and director of cyber law enforcement at the U.S. Securities and Exchange Commission (SEC), said that Binance’s prospects are worrisome.

John Reed Stark mentioned in a post published earlier today (3rd) that with his 18 years of practical experience as a law enforcement lawyer in the US SEC, he has already developed a good ability to “find danger signals” , and after carefully observing Binance, he summed up the “9 warning signs of thunderstorms” based on some government announcements and media reports:

The U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance for violations;
(Social Media) Stern accusation that Binance was commingling Binance.com and Binance.US customer funds;
Binance has never provided real proof of reserves and audited financial data;
Accounting firm Mazars Group, which performed the Proof of Reserves assessment for Binance, abruptly ceased cooperation and denied the validity of its statements;
The actual location of Binance’s headquarters remains a mystery;
Unable to obtain reliable, credible, and timely disclosures related to Binance, including: basic financial information such as revenue, profits, cash reserves; the role of tokens on the balance sheet; cryptocurrency margins; exposures; how reserves are Withdrawal, leveraged funding;
Binance’s reserve stablecoin is at risk of decoupling;
There may be a run on Binance at any time;
The U.S. Department of Justice may sue Binance for criminal misconduct.
John Reed Stark then accused Binance and Binance.US of having an “incestuous relationship”, and has taken corresponding measures. In addition to keeping the outside world from knowing the relationship between the two companies, it is also actively soliciting American investors and collaborating with the United States. Customers make transactions. He concluded by stating:

To sum up, it is obvious that Binance will face more civil and criminal lawsuits, so if you are a user of Binance, I urge you to leave now. But anyway, that’s just my opinion.