Another Battle for Binance

[Darker45]

For the past months, Binance has been facing a number of regulatory troubles in more than a handful countries. The company is also facing lawsuits at the same time. And as if things are not yet enough for the beleaguered exchange, another allegation had just come out. This time it is about manipulating the market, specifically engaging in counter trading and liquidation of users. This serious accusation came from someone who claimed to be a former big data engineer of the exchange.

"I have multiple audio and video files inside the office in which management is CLEARLY talking about 'quickly' liquidating the overleveraged 'longs and shorts' before allowing price to continue up/down, in order to increase the companies' insurance fund & profits."

"Binance “keeps an overview of big liq levels and purposely pumps/dumps the price to take them out for profit.”

"ALSO, ONE OF OUR PROJECTS WAS TO DEVELOP "NEW METHODS" TO INCREASE THE COMPANIES' EFFICIENCY REGARDING MANIPULATION OF PRICE ACTION IN ORDER TO LIQUIDATE OVERLEVERAGED POSITIONS. PROOF IN THE FORM OF SCREENSHOTS, AUDIO & VIDEO FILES & OUR WEEKLY SCRUM MEETINGS ARE AVAILABLE."
— FULLTIME APE 🦍 | EX-BINANCE BIG DATA ENGINEER (@REALFULLTIMEAPE) AUGUST 21, 2021

"I'LL SOON RELEASE ALL THE PROOF I HAVE THAT HEAVILY IMPLY & PROVE THAT BINANCE IS USING MALICIOUS PRACTICES IN ORDER TO FINANCIALLY BENEFIT THE COMPANY.

WHY AM I DOING THIS? SIMPLY BECAUSE THEY TREATED ME (AND OTHER EMPLOYEES) LIKE UNDERPAID SHIT.

HAVE A NICE DAY CHADS 👋"
— FULLTIME APE 🦍 | EX-BINANCE BIG DATA ENGINEER (@REALFULLTIMEAPE) AUGUST 21, 2021

Interestingly, even if the accusation is just raised by a random and anonymous Twitter user, @RealFulltimeApe, in a mere tweet, Binance seems to have been bothered by it. They responded to it by releasing a statement. And while they appear to brush it off as a mere FUD, something coming from someone who is an impersonator or one with malicious intent, it seems they are also hinting at the possibility of it being true by saying they also welcome responsible whistle-blowing. Does Binance fear of what RealFulltimeApe has up his sleeve?

As I've been saying, I'm no fan of margin trading, especially those with ridiculous leverages; they're an invitation for intentional liquidations. But is Binance also involved with it?

By the way, RealFulltimeApe's tweet is already deleted as well as his account deactivated.

Sources:

1. https://cointelegraph.com/news/binance-denies-allegations-of-market-manipulation
2. https://crypto-economy.com/heres-what-binance-has-to-say-about-market-manipulation-allegation/
3. https://twitter.com/binance/status/1429848224215355394

[noorman0]

Sometimes the truth is considered FUD because it has no corroborating evidence. Given this case, I guess it has something to do and the anonymous statement is a little bit true. I just pleased it when people start giving their honest reviews along with evidence and stop hiding things against what they think is most trusted. This assumption is actually slowly becoming an opportunity to start a dirty business in a big company, including Binance.

[examplens]

Sometimes the truth is considered FUD because it has no corroborating evidence. Given this case, I guess it has something to do and the anonymous statement is a little bit true. I just pleased it when people start giving their honest reviews along with evidence and stop hiding things against what they think is most trusted. This assumption is actually slowly becoming an opportunity to start a dirty business in a big company, including Binance.

that it is difficult to discern what FUD is and what it really is. they are certainly under the microscope and it is difficult to predict what will come out of them in the end.

"SEC has now confirmed that #Binance is under investigation by the Federal Government"

https://twitter.com/cryptowhale/status/1429819156052983816?s=21

[Kyraishi]

Things are certainly not looking good for Binance.

But this is by no means surprising. I think that if you look at past history, exchanges that are able to generate a ridiculous amount of profits in a short period of time are generally quite manipulative and aren't the most transparent with their practices.

I don't think that this will be anything more than "gimme a few million dollars and start doing KYC" from the SEC though.

[Twinkledoe]

Things are certainly not looking good for Binance.

But this is by no means surprising. I think that if you look at past history, exchanges that are able to generate a ridiculous amount of profits in a short period of time are generally quite manipulative and aren't the most transparent with their practices.

I don't think that this will be anything more than "gimme a few million dollars and start doing KYC" from the SEC though.

With the position of binance in the market, I am certain that they will really be put under microscope. But with their resources, I believe they have topnotch lawyers also to address these issues. I don't think they will just sit and wait those allegations. With their reputation, a lot of crypto users are really depending on their services, so I hope, they will not fail us. I strongly believe, they can surpass all these legal battles.

[Darker45]

But this is by no means surprising. I think that if you look at past history, exchanges that are able to generate a ridiculous amount of profits in a short period of time are generally quite manipulative and aren't the most transparent with their practices.

Most especially with margin trading. Leverage is a perfect tool for predators.

With the position of binance in the market, I am certain that they will really be put under microscope. But with their resources, I believe they have topnotch lawyers also to address these issues. I don't think they will just sit and wait those allegations. With their reputation, a lot of crypto users are really depending on their services, so I hope, they will not fail us. I strongly believe, they can surpass all these legal battles.

Binance must be doing something to save their neck. That's certain. We shouldn't be worried about it. As a matter of fact, we can see not just regulatory compliance but also a little extra with the company's decision to reduce daily withdrawal limit to a mere 0.06BTC and a compulsory intermediate verification for everyone.

However, more than surpassing all these legal battles, I hope Binance's unfair practices would be uncovered if there are any. That would compel them to shape up into a fairer exchange.

[dkbit98]

Binance must be doing something to save their neck.

It's more like they are escaping and saving their necks from falling axe.
UK regulators are now saying that Binance is not even capable of being supervised and they refused to provide basic information about their business.
We know that Bitcoin doesn't have a CEO and a office, but centralized exchanges like Binance are pretending they are like Bitcoin so they don't need to have official address.
I think they especially pissed some people off when they introduced stock token trading, and we all know they are constantly manipulating markets for years.
Here is latest FCA announcement from yesterday saying that Binance Markets Limited complied with all aspects of the requirements, and even CZ tweeted about this:
https://www.fca.org.uk/news/news-stories/consumer-warning-binance-markets-limited-and-binance-group

[hello_good_sir]

I'd be interested to see what the actual proof is, though. I'm not sure if I'd trust a random twitter account over CZ.

Although I do agree that Binance has engaged in very risky behaviour over the past few years to ride the crypto boom, and their apparent disregard for regulators was one of the things that got them here in the first place.

Would definitely be interested to see the "proof" if there are any. For now let's not jump to conclusions.

[Sayeds56]

But this is by no means surprising. I think that if you look at past history, exchanges that are able to generate a ridiculous amount of profits in a short period of time are generally quite manipulative and aren't the most transparent with their practices.

Most especially with margin trading. Leverage is a perfect tool for predators.

With the position of binance in the market, I am certain that they will really be put under microscope. But with their resources, I believe they have topnotch lawyers also to address these issues. I don't think they will just sit and wait those allegations. With their reputation, a lot of crypto users are really depending on their services, so I hope, they will not fail us. I strongly believe, they can surpass all these legal battles.

Binance must be doing something to save their neck. That's certain. We shouldn't be worried about it. As a matter of fact, we can see not just regulatory compliance but also a little extra with the company's decision to reduce daily withdrawal limit to a mere 0.06BTC and a compulsory intermediate verification for everyone.

However, more than surpassing all these legal battles, I hope Binance's unfair practices would be uncovered if there are any. That would compel them to shape up into a fairer exchange.

Binanance is a world leading exchange and it has huge contribution for its development and overall acceptance and adoption so obviosaly they are many competitors who dont' want to see them where they stand todaybut  having said that they must stop any il-legal or unfair practice if they are involved in  and respect and comply with local and international regulations.
I am confident that evetually bianance will successfully fight this legal battle and contunue their operations worldwide.

[hugeblack]

I strongly believe that if there is an audit of price manuplation and other fraudulent methods that have been practiced or may be practiced by Binance, you will find tons of evidence.
Binance monopolistic activity and such kind of activities encourage some illegal practices, especially in an unregulated market and small trading volumes, especially in the altcoin market.

Overall and with all these things they are much better than many of the altcoin and stablecoin markets.

[virasog]

Things are certainly not looking good for Binance.

But this is by no means surprising. I think that if you look at past history, exchanges that are able to generate a ridiculous amount of profits in a short period of time are generally quite manipulative and aren't the most transparent with their practices.

I don't think that this will be anything more than "gimme a few million dollars and start doing KYC" from the SEC though.

As per my previous experience. every good exchange experience some downfall and same is happening with binance at the moment. No doubt binance is still the number 1 exchange and it may remain like this for some more time, but after every peak there is a fall.
I think the next big exchange could be ftx.com in the coming years.

[michellee]

Things are certainly not looking good for Binance.

But this is by no means surprising. I think that if you look at past history, exchanges that are able to generate a ridiculous amount of profits in a short period of time are generally quite manipulative and aren't the most transparent with their practices.

I don't think that this will be anything more than "gimme a few million dollars and start doing KYC" from the SEC though.

As per my previous experience. every good exchange experience some downfall and same is happening with binance at the moment. No doubt binance is still the number 1 exchange and it may remain like this for some more time, but after every peak there is a fall.
I think the next big exchange could be ftx.com in the coming years.

It happens to many exchanges but with different experiences. But I think Binance can handle that and clear the mess and make sure that will not affect their exchange. I think that case can blow up from someone who is not satisfied with Binance and the most case it came from an employee who gets fired. So they tell the story behind the scene and make the public think or panic after hearing that thing while the public does not know the truth. I am more curious about what Binance will do related to that case but I think the case will not become bigger and seriously affect Binance.

[joniboini]

every good exchange experience some downfall and same is happening with binance at the moment. No doubt binance is still the number 1 exchange and it may remain like this for some more time, but after every peak there is a fall.

I think the same thing will happen to the most used exchange, regardless if it's Binance or not. Governments are trying to gain more control since the market is becoming more and more crowded. No exchange will be free from them unless they plan to run away from one country to another every time there is a crackdown.