Thread by @Annihil4tionGod

OG: @pandanaiksapi:
#Binance is the largest crypto exchange in the world with a daily volume of over $15 billion, 10x bigger than the second. It's considered the safest for trading and storing #crypto assets, but is it truly #SAFU? #crypto #trading
A 🧵from a stupid trader (1/?)

https://twitter.com/pandanaiksapi/status/1617236385139941378

Binance, founded by @cz_binance in 2017, has its origins in China. Due to the government's ban on #crypto, it had to move its headquarters to Japan. However, as Japan also started to implement stricter regulations for #crypto, Binance had to move again, this time to Malta. (2/?)

On Feb 21, 2020, the Malta Financial Services Authority (MFSA) announced that @binance does not have an operating license. Binance has also been investigated multiple times by the IRS and the US Department of Justice on charges of money laundering.

https://twitter.com/ICODrops/status/1230844572781228034?s=20

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In 2019, Binance, which was banned in the US, opened @BinanceUS, a separate exchange with policies adjusted to comply with US regulations. @BinanceUS only serves users from the US, and US citizens cannot open an account on Binance.

(4/?)

This separation allows @BinanceUS and @binance to operate according to the regulations of the US authorities. However, many suspected that Binance is still operating illegally in the US and there are often transfers between #Binance and #BinanceUS.

https://twitter.com/MikeBurgersburg/status/1608443863269605378?s=20

(5/?)

Why are transfers between @Binance and @BinanceUS a problem?
US customers funds have to be backed 1:1. However, with transfers between the two companies, the funds are not guaranteed, and Binance could potentially take funds from the US.

https://twitter.com/MikeBurgersburg/status/1604431139430711300?s=20

(6/?)

This transfer of funds (#Commingling) is a big issue for their customers' assets, and @binance shouldn't do this. It is similar to what happened between FTX and Alameda, where FTX lent Alameda customer funds for Alameda's trading.

https://twitter.com/acoindetective/status/1615832933709000705?s=20

(7/?)

@binance is issuing stablecoins under the name Binance USD called $BUSD, in partnership with #Paxos. As the manager, #Paxos maintains the value (peg) of BUSD by guaranteeing the $BUSD issued on the ERC-20 network through cash in the Paxos treasury and US Treasuries.

(8/?)

For ease of transaction, Binance issues Binance-peg BUSD on other networks, locks BUSD on the ERC-20 in the Binance Wallet, and issues it. This Binance-Peg BUSD is natively on the Binance Chain network.

https://twitter.com/Tree_of_Alpha/status/1602259577873043461?s=20

(9/?)

But there had been issues:
@business reported that in the years 2020&2021 Binance-Peg $BUSD was often "undercollateralized" meaning tokens issued exceed the guarantees provided by Binance. Over three events, the gap was over $1 billion.

https://twitter.com/DylanLeClair_/status/1612872736853921793?s=20

(10/?)

A spokesperson for #Binance replied that "the Binance-Peg $BUSD management and underwriting process doesn't always run flawlessly, but Binance has made much better improvements with more sophisticated collateral checks."

https://twitter.com/otterooo/status/1612865475054309380?s=20

(11/?)

A spokesperson for Binance also acknowledged that there had been problems in managing their stablecoins, not only limited to $BUSD, but also other tokens including $USDC.

https://twitter.com/leomschwartz/status/1616074862375608322?s=20

(12/?)

The twitter account @DataFinnovation revealed that there have been numerous instances where stablecoins traded on Binance have exhibited strange behavior and instances of undercollateralization.

https://twitter.com/DataFinnovation/status/1615271618657538048?s=20

(13/?)

Why is the peg of stablecoins important?

Because as a token with a 1:1 value to fiat, public trust depends on whether the token truly has a fiat value, as evidenced by collateral money or other assets with equivalent value to the stablecoins in circulation.

(14/?)

The #LUNA Token crash was caused by their stablecoin, #UST, being depegged from $1, triggering a drop in crypto prices. The depeg risk of a larger stablecoin like $BUSD could/will trigger a bigger crisis.

(15/?)

Recently, the US Department of Justice announced the arrest of the #Bitzlato exchange CEO. He was accused of facilitating money laundering activities, ransomware attacks, and other criminal activities. This exchange is closely connected to the Hydra darknet activities.

(16/?)

An analysis of on-chain activity from #Bitzlato revealed that one of the three biggest trading partners of this exchange had been #Binance, reinforcing accusations that Binance is involved in money laundering as the DOJ has been alleging.

https://twitter.com/CoinDesk/status/1615977449359130624?s=20

(17/?)

Furthermore, these findings reveal that #Binance has ties to the criminal darknet network Hydra, as has been alleged by some.

https://twitter.com/FastOhSoFast/status/1616430483528683521?s=20

(18/?)

#Binance has repeatedly stated that they are committed to preventing criminal activites by strictly implementing KYC/AML procedures, but this incident again reveals that there is still a lot of room for improvement in their compliance with AML laws.

https://twitter.com/tnt5065/status/1616272219847655424?s=20

(19/?)

#Binance own blockchain #BNBChain has also received a lot of criticism. F.e. by @cryptohippo65, who has proven that there are transactions that cannot be found in the chain explorer, including 22 million $BNB that were "stolen" by hackers in 2022.

https://twitter.com/DataFinnovation/status/1605824550507229184?s=20

(20/?)

Some even believe that Binance's #BNBBeaconChain does not operate like a #blockchain, due to the many chain errors, bugs, strange forking, and suspicious "repair tools" indicating that there is a lot of manipulation on this chain.

https://twitter.com/DataFinnovation/status/1605824545247571969?s=20

(21/?)

Back to hacks:
@cz_binance can "turn off" #BSC to prevent hackers from transferring stolen BNB. While this may seem like a positive move, it demonstrates that CZ has control over BSC, undermining the principle of decentralization in the blockchain.

https://twitter.com/cz_binance/status/1578171072067031042?s=20

(22/?)

If a small group of individuals controls the blockchain, isn't it similar to centralized finance (CEFI) like traditional financial institutions? A great tweet from @alex_valaitis for the compliment (or satire) on @cz_binance and #BSC

https://twitter.com/alex_valaitis/status/1578220939648684032?s=20

(23/?)

@MikeBurgersburg: #BNBBeaconChain is often malfunctioning and being repaired with tools that can change and edit transaction hashes on the chain, thereby breaking the fundamental blockchain principle of immutability (unchangeable record)

https://twitter.com/MikeBurgersburg/status/1611356645669457921?s=20

(24/?)

The ownership of #BNB goes to @binance itself, or parties affiliated with #Binance. This makes the $BNB price much easier to control and manipulate suspects @DylanLeClair_

https://twitter.com/DylanLeClair_/status/1603451242562437290?s=20

(25/?)

This week, many have discussed that @binance is a client of #SignatureBankofNewYork $SBNY and their #Signet Network. This uncovers one of the new problems for #Binance.

https://twitter.com/MikeBurgersburg/status/1615677293367595008?s=20

(26/?)

#Signet itself is a network owned by $SBNY that allows their clients to make intra-bank transfers anytime 24/7 in 365 days without any problems. Instant, any amount, anytime. How big is the Signet network?

$1 TRILLION in a year!

(27/?)

$SBNY refers to #Signet as #WalledGarden, claiming their clients must go through strict KYC/AML to log in. This is because $SBNY is a bank in the US that has to carry out anti-money laundering measures.

https://twitter.com/DGBarchie/status/1615679124550438913?s=20

(28/?)

On the #Signet client list released by @MikeBurgersburg, we can find #Binance along with #FTX, #Alameda, #Genesis, and #Huobi.

But why is this an issue?

dirtybubblemedia.substack.com/p/a-walled-gar…

(29/?)

If we are going to make a deposit via bank transfer #SWIFT to @binance, the designated account number belongs to #KeyVisionDevelopment Limited at $SBNY bank, proving that @Binance is a member of #Signet.

https://twitter.com/MikeBurgersburg/status/1615158800775774210?s=20

(30/?)

#KeyVisionDevelopment Ltd is according to @Binance located in the Seychelles. Surprisingly, #Keyway Seychelles Ltd, which "coincidentally" has a similar name & the same address, states that it is not affiliated with #KeyVisionDevelopment. Well Lol!

https://twitter.com/MikeBurgersburg/status/1615158800775774210?s=20

(31/?)

So, did #Binance use a FAKE company name and address to pass KYC/AML from #Signet, which they say is "very strict"?

Let's ask @cz_binance or @binance or @BinanceHelpDesk, so that we don't become su'udzon (No idea what this means xD) .

(32/?)

The logo of both companies look pretty the same. Even the font used nearly idenctical. Very Professional right? It's normal for a normal, legal company like #KeyVisionDevelopment with whom @binance is doing business.

https://twitter.com/nwdbbnr/status/1617090565027532800?s=20

(34/?)

In one Credit Reports #KeyVisionDevelopment mentions the business transaction as "Strike-Off" and the rating is D. Hmm, the officer who made this report must be wrong, because @binance just still use them as gateway😏

https://twitter.com/ExkrementKoin/status/1614535998905454592?s=20

(35/?)

Looks like #Signature Bank of New York $SBNY has done an amazing KYC/AML on #KeyVisionDevelopment before it became a #Signet customer. So, what will happen when the origins of the #Keyway group get publicly discussed?

(36/?)

It is possible that $SBNY made the decision to limit SWIFT withdrawals with a value below $100,000 for all #Signet clients including @binance. Because of their failed KYC it likely that $SBNY doesn't want to get in trouble with the US regulators?

https://twitter.com/Frances_Coppola/status/1617151110908727296?s=20

(37/?)

So, do you still believe that @binance is the most #SAFU place for your crypto assets? Let's have a discussion - with @pandanaiksapi!

(38/?)

#Binance #Indonesia #FUD #SWIFT #SBNY #BNB #BSC #BTC

@cz_binance
@BinanceHelpDesk
@Tokocrypto
@BNBCHAIN
@coinvestasi
@PerjuangCryptoID
@captencrypto707
@anggaandinata
@sarjana_crypto
@timothyronald22

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Disclaimer: This article was written by @pandanaiksapi in indonesian language. Translated by @Annihil4tionGod. This is not my work - I just felt urg to make this collection of information available in the english language. All credits to the author and researchers!

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@intel_jakal @GriffinsMayo @ThegreatLambiny @MikeBurgersburg @DylanLeClair_ @nwdbbnr @cryptoinformer0 @cryptohippo65 @Cryptadamist & @ParrotCapital

(41/41)

@ParrotCapital You might like.... xD

@librehash ✌️ Nice summary from an Indonesian researcher