- Binance faces renewed criticism for facilitating transactions linked to Iran, which its leadership calls “unfair and unfounded.”
- The exchange claims extensive due diligence with a 1,500-person compliance team, but scrutiny points to failures, especially with the TrueUSD stablecoin.
- TrueUSD’s reserves are reportedly trapped in speculative, illiquid funds, raising questions about Binance’s ongoing token evaluation standards.
Binance is once again under intense global scrutiny as analysts examine its role in processing transactions for Iranian entities. In recent public statements, Binance co-CEO Richard Teng and Chief Compliance Officer Noah Perlman have forcefully rejected these allegations.
They labeled the criticisms unfounded and emphasized that compliance is an “unbreakable promise to users.” The company further claims this promise is backed by over 1,500 experts dedicated to user protection and rigorous platform oversight.
Binance publicly states that token listings undergo strict due diligence, as detailed on its support website. That process is supposedly continuous, with a specialized team ensuring listed tokens meet user standards.
However, the ongoing listing of the stablecoin TrueUSD appears to contradict these assurances. According to documented attestations, nearly all its reserves are locked in non-cash speculative investments.
These funds are subject to legal proceedings and a prior SEC settlement against the token’s former operators. The token’s current operator, Techteryx, has even sued the Hong Kong institution holding its contested collateral.
Consequently, TrueUSD reportedly depends on credit from Justin Sun for user redemptions, despite his denials of ownership. Nevertheless, Binance’s website inaccurately states the stablecoin is collateralized by USD in trust company escrow accounts.
It also falsely attributes the token’s operation to TrustToken instead of its actual operator, Techteryx. This case illustrates a potential gap between Binance’s compliance claims and its actions regarding listed assets.
If Binance misrepresents stablecoins linked to Justin Sun, its due diligence on other tokens remains questionable. The exchange’s vast compliance resources seemingly failed to prevent these significant discrepancies from persisting on its platform.
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