- Binance and Binance.US are more intertwined than previously thought.
- Binance executive suggested ways to retain U.S. customers despite the ban.
- Their apparent separation may have allowed them to avoid regulatory oversight.
Binance and Binance.US have long been considered separate entities, with little to no indication of their supposed close relationship. However, recent revelations have emerged that suggest otherwise.
NEW: For a long time, Binance and https://t.co/hQmVxIkqOi said they were totally separate entities. @kowsmann and I reviewed internal messages showing the companies were deeply intertwined, mixing staff, tech (in China) and finances. ?1/8https://t.co/N4Az4reyPU
— Caitlin Ostroff (@ceostroff) March 5, 2023
According to the reports, internal messages reviewed by investigative reporters show that the two companies are, in fact, deeply intertwined, with staff, technology, and finances being mixed between them, particularly in China.
Caitlin Ostroff, one of the investigative reporters, found out that a member of the Binance team in Shanghai activated trading seconds before Binance.US exchange went online. As a result, inquiries into the motivations behind its inception and the identity of its originator became more prevalent.
Nevertheless, in response to the query, Binance CEO CZ Changepeng Zhao acknowledged that it was a blunder by an employee in Shanghai.
Moreover, regarding the investigative journalists’ findings, Binance also declared that it would no longer serve consumers in the United States owing to regulatory problems in 2019. Yet, in the messages, a Binance executive outlines methods to keep the largest U.S. clients. In addition, he also questioned if U.S. consumers had offshore corporations they might utilize.
In contrast, this disclosure casts doubt on these businesses’ openness and dedication to abiding by the laws of the nations in which they conduct business. Nonetheless, they could avoid scrutiny and regulatory oversight by presenting themselves as separate entities.
On the other hand, if they collaborate closely, they may be subject to stricter laws than previously disclosed.