After the collapse of FTX, there were fears for a while that Binance would suffer the same fate. Sharp criticism was also directed against the non-transparent proofs of the reserves issued by the accounting firm Mazars. Shortly thereafter, Mazars terminated its cooperation with the world’s largest crypto exchange.
The allegations against Binance
After Genesis and DCG stepped into the spotlight, most recently filing for bankruptcy, Binance is enjoying a welcome respite. Criticism died down and the stock market seemed to be coming out unscathed – until now. Conor Grogan, head of product business operations at rival crypto exchange Coinbase, has made some serious accusations against Binance.
Grogan tweeted that there has been a “championship” pattern at Binance over the past year and a half. An example of this is the purchase of around 78,000 ERN between June 17 and 21 last year. They sold immediately after the announcement that the token would be listed on Binance. Wallets linked to Binance bought 900,000 RARI seconds before the token was listed and sold it minutes after.
The profit was $100,000 in one day.
Grogan shared that hundreds of thousands of TORN tokens were bought right before the listing and sold immediately after. The same thing happened with the RAMP cryptocurrency. Over $500,000 worth of tokens were purchased in a few days. After RAMP was listed on the exchange, the tokens were sent to Binance.
Grogan claims that backers made $100,000 in practically one day of the token sale. He added that he found out about these transactions by looking at the deposit address of the original OKX wallet and then checking the counterparty wallets.
According to Grogan, there could be several reasons for the lead. According to the manager of Coinbase, the most likely reason is MNPI (Material Non-Public Information). An insider associated with the exchange’s team shares information regarding the details of the new asset announcement.
It is also possible that the trader has discovered a security flaw in the exchange or its API. In any case, law enforcement and regulators will soon take an interest. Coinbase has also recently faced allegations of insider trading.
Binance Behind Bitcoin Price Rise?
Last week, there were rumors that a Binance unit had caused the price of Bitcoin to jump from $17,000 to $21,000. First, an anonymous trader indicated that the crypto whale was buying Bitcoin with stablecoin BUSD based on its observations of the BTC spot CVD (delta of cumulative volume). Other exchanges started buying Bitcoin with Tether and USD at around $19,500.