Concerns Raised Over Binance 'Abnormal Activities'

  Binance

Nick Neuman, CEO of Bitcoin self-custody firm CASA, has voiced concerns about what he describes as unusual activities surrounding global cryptocurrency exchange Binance and its U.S. affiliate Binance.US.

Neuman emphasized the importance of self-custody in wealth management, advising individuals to take control of their assets. His comments come in the wake of multiple reports casting doubt on Binance’s operations.

Comparisons with Previous Cases

Drawing parallels with last year’s issues involving firms such as FTX and Celsius, Neuman noted that many members transferred their assets to Casa vaults seeking enhanced security. The unraveling of these firms highlighted the vulnerabilities in cryptocurrency exchanges.

Binance’s Troubled Waters

Numerous reports over the past months have raised concerns about Binance and Binance.US. These include the halting of a Binance stablecoin by crypto firm Paxos, accusations of Binance mixing customer funds with company revenue, and banks limiting Binance’s access to the U.S. banking system.

Further Issues for Binance

Additional worries include Binance’s decision to withdraw from the Netherlands amid potential investigations in France, and Binance CEO Changpeng Zhao potentially facing an indictment in Brazil. Neuman described these signs as “abnormal” and advised caution, implying that there could be more to the situation than is currently visible.

Advice for Binance.US Customers

Neuman also offered advice to Binance.US customers on how to recover their funds, especially given the recent halt in direct dollar withdrawals. He reiterated the mantra, “not your keys, not your coins”, reinforcing the importance of self-custody in crypto asset management.

These issues are expected to be a hot topic at the upcoming Benzinga Future of Digital Assets conference on Nov. 14, where experts will dive deeper into the rapidly evolving crypto landscape.