Former FTX affiliate Adam Cochran joined the Binance critics list & said that Binance’s financial position is not good, instead of what the exchange is showing.
Binance is a top-ranked crypto exchange. The crypto services by this crypto platform remain top-notch, & this is the reason why the majority of the crypto traders choose this platform to trade crypto assets in this innovative sector. At present, Binance is facing huge legal hurdles in the US because of two suits by the US SEC & CFTC against Binance’s independent American subsidiary BinanceUS.
A Crypto enthusiast Lucas Alexander dragged the attention of the popular crypto entrepreneur Justin Sun on the new Binance FUD.
This crypto X user noted that FUDster Adam Cochran is associated with the FTX crypto exchange, the biggest rival of the Binance crypto exchange which collapsed badly in Nov 2022.
This Binance critic Cochran claimed that Binance’s financial position is not good because the Binance Secure Asset Fund for Users (SAFU) and the Industry Recovery Fund (IRI) are not secure, over what Binance is showing publicly.
According to Cochran, the SAFU fund and the IRI don’t exist because the Binance team used these two funds to pump the trade price of Binance coin (BNB).
Binance, FTX, & Bankruptcy
Binance & FTX were rivals to each other in the crypto sector but still, Binance was one of the investors in the FTX crypto exchange.
When Binance CEO Changpeng Zhao (CZ) publicly announced that his team is going to liquidate its all FTX investment return funds then that news acted as a catalyst to create a very big fear among the FTX customers, so all the customers started withdrawing funds & finally, the FTX team was unable to give fund withdrawal to the customers.
On 17 Nov 2022, the FTX team filed for bankruptcy in a US bankruptcy court along with more than 100+ affiliated companies.