“Shark Tank” investor and O’Leary Ventures Chairman Kevin O’Leary voiced his skepticism about the future of cryptocurrency exchange Binance (BUSD/USD) at the most recent Benzinga Fintech Deal Day & Awards earlier this week.
O’Leary asserted on Monday, “Binance will be history soon.”
The statement came amid Binance’s recent announcement to cease local currency deposits in Russia beginning Nov. 15, as detailed on its blog.
Binance waited to respond to a request for comment to Benzinga.
SEC’s Allegations and Charges Against Binance
The U.S. Securities and Exchange Commission (SEC) took legal action against Binance on June 5, alleging the operation of unregistered exchanges, broker-dealers, and clearing agencies. SEC Chair Gary Gensler accused the platform and its CEO, Changpeng Zhao, of deceptive practices. “Through thirteen charges, we allege that Zhao and Binance entities engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law,” Gensler stated. The SEC’s concerns included allegations of Binance’s manipulative trading practices and misrepresenting trading controls.
A report by Wired earlier in June highlighted Binance’s need for a fixed head office or formal address despite handling daily cryptocurrency transactions worth $12 billion.
The SEC also accused Binance and Zhao of allowing the transfer of customer assets to Sigma Chain, another Zhao-owned business. The regulatory body claims that Sigma Chain artificially uses manipulative trading to inflate Binance’s trading volume.
In a separate interview with Fox Business, O’Leary mentioned Abu Dhabi’s plans to launch a new exchange, M2, aimed at replacing FTX and Binance. He said he anticipates that M2 will be fully compliant, transparent, and backed by significant financial resources.
At the Benzinga Fintech Deal Day & Awards, the “Shark Tank” investor noted the readiness of sovereign wealth funds and institutions to invest in Bitcoin (BTC/USD), emphasizing the need for more regulatory clarity in the market.
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