Binance is on the agenda with two hot developments, one of which is the $ 8 million Tinder lawsuit. Reuters reports that the exchange violates US laws.
Binance cleared in $8 million Tinder lawsuit
The leading exchange was among the companies targeted in a crypto fraud case last year on the dating app Tinder. In the $ 8 million fraud case, the verdict was given in favor of Binance yesterday.
On May 22, US District Judge Amos Mazzant dismissed the case, stating that there was no evidence linking Binance to the alleged theft. The scam involved Texan Divya Gadasalli, who claimed to have lost more than $8 million after being cheated on by a man named “Jerry Bulasa” she met on Tinder.
The victim, Divya Gadasalli, claimed that Binance was involved in this case because it provided the scammer with an exchange service. He argued that Binance and Binance.US are the same organization and that people use VPNs to access the exchange. But the court concluded that his exchange had nothing to do with the fraud case.
Reuters made new allegations about Binance
In another development, 3 experts speaking to Reuters claim that Binance has brought together billions of user funds with its revenue in 2020 and 2021. The exchange previously admitted to mistakenly confusing consumer funds with B-token reserves. In another incident, he accidentally closed derivatives positions of Australian users.
According to the claims of experts, Binance is using user funds illegally. Specifically, it allegedly combines client funds with company revenues, which should be kept separately in the 2020 and 2021 periods. If this is true, Binance will be sued for violating US finances.
The Reuters report reviewed a February 2021 bank record from Binance. He found that the exchange had confused $20 million in client funds with $15 million in corporate funds.
Exchange spokesperson Brad Jaffe denied these allegations about the exchange.
US regulators step in
cryptocoin.com As we reported, the CFTC sued Binance at the end of March. The CFTC lawsuit cited Binance CEO Changpeng “CZ” Zhao for trading violations related to the exchange.
Additionally, the US Department of Justice (DOJ) is investigating Binance on various issues, including violating sanctions against Russia.
CZ’s Response to the CFTC Complainthttps://t.co/iIoDR70IT9
— Binance (@binance) March 27, 2023
SEC Chairman Gary Gensler has previously stated that many cryptocurrency exchanges do not follow the rules. Regulators require exchanges to separate client funds from institutional funds. For this reason, the SEC has previously filed sanctions lawsuits against many crypto firms and exchanges. However, Binance has not been subject to any enforcement of this coverage until now.
