- John Reed Stark thinks so
- In his opinion, the bankruptcy of the exchange is inevitable
- After that, the “massacre” of investors will begin
The situation around Binance is heating up. Against the background of the scandal after the publication of Forbes, the exchange has attracted increased attention from the authorities. And some officials are sharply critical of the new potential monopolist.
One such example is John Reed Stark. He is a former lawyer with the Securities and Exchange Commission (SEC). Yesterday, March 6, on his Twitter page, he published an “exposure” of Binance.
According to him, the exchange is a kind of “shadow” bank that issues counterfeit currency. At the same time, it provides custodial and other financial services without the supervision of the authorities.
The official also compared Binance to FTX, noting that a banking panic (bank run) of “epic proportions” is inevitable. The exchange will fall, and with it the entire cryptocurrency market.
Note that Stark is far from the only one who is trying to undermine the situation. Recently, Senator Elizabeth Warren, a longtime crypto skeptic, sent the exchange a letter urging it to release account and reserve information.
What will happen next? Stark believes that Binance is facing inevitable bankruptcy. At the same time, most of the exchange’s clients will be “out of work” and will become unsecured creditors.
“Exchanges, including crypto exchanges, need constant oversight, audits, inspections, insurance and net worth restrictions, aggregation and licensing requirements. This is a condition for their proper functioning,” said Stark.
The situation with BUSD is really worrisome. Recall that earlier we published material that the top management of the exchange cannot clearly answer the accusations of Forbes.
And now the exchange has received another “slap in the face”, this time from the WSJ. Recall, the portal said that Binance “for years” deceived US regulators.
