21.12.2022 19:17

Binance Stress Test: Catastrophe or Blackmail?

Dear Clients and Partners!

Binance Stress Test: Catastrophe or Blackmail? The Binance exchange which has dominated the crypto market since the FTX bankruptcy, has experienced a record capital outflow. The total loss of stablecoins per day is more than $3 billion. In addition to the market plankton, partners and associates of Changpeng Zhao (CZ) were also seen among the alarmists, for example, Justin Sun withdrew BUSD tokens for $33 mln and USDT for $15 mln, and market maker JumpTrading took more than $146 mln from the scandalous exchange.The outflow of funds has already affected the decrease in liquidity. Main problem of Binance is the same as that of its deceased competitor  the structure of the guaranteed capital.Recently, a Binance Reserve Confirmation Report made by Mazars Auditors was posted on Twitter. There are only three indicators in a five-page document:  current balance of the exchange (582.5 thousand BTC);  obligations to clients (597.6 thousand BTC);  net liabilities excluding loans issued (575.7 thousand BTC).Based on this meagre data, Binance announced a reserve level of 101%. But the report did not contain information about the company's obligations to external investors, the state of bank accounts, and most importantly, there was no mention of the issue of its own tokens and their use as an investment asset. But FTX just destroyed the fraud with their own crypt.On December 12, Reuters, citing its sources, stated that the US Department of Justice is ready to charge Binance and its founders with money laundering and sanctions violations, the amount of claims is about $ 10 billion. Representatives of the crypto exchange deny such information, but it is not possible to stop the outflow of deposits.The opaque reserve report has already caused the BNB token to drop by almost 4%, although CZ is trying to calm the market and calls the situation political blackmail and a basis for future growth. A real way out of the crisis is not yet visible, the panic is intensifying, and any operations with the crypt threaten with a fatal risk.Profits to yall!#ForexChief #exchange #forexnews #BTC #stocks #market #crypto #profit #Binance #Twitter #BNBtoken

Sincerely yours,
ForexChief Team