Former SEC Official: Binance's Operations Are Less Transparent Than FTX's

ChainCatcher news, John Reed Stark, former director of the SEC's Internet Enforcement Office, believes that Binance's operations are more "opaque" than those of FTX. He stated, "There is absolutely no transparency, it does not operate in the sunlight, and there is no confirmation of its financial condition."

Reports indicate that Binance has not disclosed information regarding the role of its native token on its balance sheet or the risks it faces when allowing customers to use borrowed funds for margin trading. Additionally, a review of filings submitted by Binance's subsidiaries around the world shows that there is little detail about the overall business structure, operations, and how Binance transfers funds between itself and its numerous subsidiaries. (Reuters)