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Dear Readers,
We all know that the post FTX collapse created shock waves across the crypto world last year and the aftermath of this collapse there are also created various undesirable collapse that are associated with FTX. Many exchanges were also shut down and the entire crypto coins were pushed down to the bottom.
As mentioned in our previous article On the sidelines we also happened to read various reports that Binance- the world's largest cryptocurrency exchange were also probed. It is to be noted that BINANCE was the first one who has come the truth of FTX.
Various Newspapers again highlights the US Federal Problem with the Binance which has been going on for the past four years.
Washington Post quoted that Mr. John Ghose, a former Justice Department prosecutor, specialist in cases related to digital assets, reported that the prosecutors are looking at whether Binance violated the Bank Secrecy Act, which needed all the financial institutions to verify the identities of their clients and flag any suspicious activity.
It is also reported that all the financial firms and Hedge Fund Institutions to share the documents of correspondences with Binance.
On the other hand, Binance has clarified that it has complied with all the laws and regulations.
In the meanwhile the Binance's native Crypto Token BNB which is ranked at No 4 according to the coin market cap website trades at $274.83.
We also need to correlate with the news that there are some associated risks with the native Crypto tokens that are associated with the Centralised Crypto Exchanges.
As said in my previous article, I would reiterate that while FTX went on to spend more for the advertisements and sponsorships for major events, Binance didn't do that and have concentrated on the operations and systems. Moreover, Binance have the adequate back up funds and they would hardly go bankruptcy. But it was evident that many investors are continued to withdraw money from Binance with the deep fears of the outcome of this probe.
I think in the current situation, irrespective of the market moves on both the sides, it will not affect binance.
Besides the interest rate hike by various central bank, recession fear and the inflation, news like this will add woes to the investors.
