Binance denies allegations of manipulating client funds

Cryptocurrency exchange Binance has denied allegations of using client funds for profit. According to Binance representatives, the platform does not use Dogecoin (DOGE) and Litecoin (LTC) contributed to the staking to issue loans to third parties or to finance other profit-oriented purposes. «LTC and DOGE are not used in on-chain staking, as they are blockchain-based tokens with different algorithms from Proof-of-Stake. Users' funds remain with Binance,» the platform’s representatives explained.

Earlier, some users accused Binance of using customer funds to pay interest on deposits. Such rumors began to spread after the platform launched the Locked Staking program for PoW-based tokens, which provides for an annual reward of up to 3.1% for DOGE and up to 7% for LTS.

Recently, representatives of the U.S. Securities and Exchange Commission (SEC) denied the information about the accusation of Binance crypto exchange in violation of the rules established for securities — the SEC reported that there is no investigation in this case. According to SEC representatives, they are not aware of any investigations into Binance. This indicates the absence of documents obliging the company to submit reports to the regulator and its employees to appear for questioning.