Renowned trader Peter Brandt has a stark warning for Binance and its cryptocurrency Binance Coin (BNB), labeling BNB as “$BNB just a cheap fiat” and calling Binance a “global scam.” This warning came in response to an X post by investor Mike Alfred. Binance’s past threats to shut down operations have shaken investor confidence, and Brandt’s remarks could further pressure BNB’s market value.
How’s Crypto Reacting To Brandt’s Criticism?
BNB, 4th largest crypto with a $32 billion market cap, has been negatively impacted by increasing regulatory pressure on Binance over the year. Due to this BNB has lost 15% of its value since January, while Bitcoin has gained 55% in the same period, adding the pressure on BNB. Despite this, BNB has shown some recovery after dropping to $203, trading above $215 recently.
While @WhaleChart on X noted that Binance is reportedly selling Bitcoin to try and stabilize the falling price of BNB.
But giving a positive signal, the analyst Crypto Rover, said that if Binance Falls it will be all good for Bitcoin.
Fraud, Legal Scam, Regulatory Pressure Circling Binance, What Next?
According to the Wall Street Journal report, Binance is allegedly involved in transactions with sanctioned Russian banks, which could lead to legal problems in the US. The dark facts revealed in the report were that Binance is handling Russia’s currency and converting funds from sanctioned banks to cryptocurrencies.
Whereas, this contradicts Binance’s previous denial of breaking sanctions. Despite this, Binance recently lifted restrictions for Russian users. If the reports are true Binance will be in a serious legal scoop pertaining to national security breaches.
In the ongoing regulatory trial, Binance is also being investigated by the United States Department of Justice (DOJ) for suspected money laundering, violation of securities laws, and non-compliance with global sanction laws.
Notably, the exchange is also under regulatory waters in various European jurisdictions, leading to its withdrawal from countries like Cyprus, Netherlands, and Germany. Additionally, Binance’s Malta and Ireland businesses have also been investigated for money laundering and tax violations.
Overall, Peter Brandt’s criticism of Binance adds to the scrutiny the exchange is facing from both regulators and prominent figures in the cryptocurrency industry.
Source: Read Full Article