- Binance helped fund major exchanges like Coinbase & Huobi, showing a centralized flow of crypto funds.
- Connections span FTX affiliates, leveraged tokens, and risky devs, hinting at potential market vulnerabilities.
- Shared wallets and cross-platform ties suggest complex, sometimes opaque networks with financial and geopolitical risks.
Worlds largest exchange Binance finds itself under intense scrutiny as the exchange confronts the U.S. Securities and Exchange Commission (SEC) in court. Analysts warn that the platform’s opaque history may signal broader risks for the crypto market.
Tyler Reed, a founder at TruthLabs, noted a set of concerning on-chain links that featured Binance and created a connection to other exchanges and prominent figures in the crypto world. According to Reed, these relationships indicate potential liquidity compression for the system as a whole.
Reed emphasizes that Binance has historically funded and set up several major exchanges, including Coinbase and Huobi. “Did you know that all of @coinbase public exchange address’ were originally funded/setup thru #binance and #crypto.com?” he tweeted.
These links suggest a centralized flow of funds that could eventually influence market stability. Furthermore, Binance’s connections extend to former FTX affiliates, leveraged token deployers, and notable developers, raising questions about transparency.
Binance’s Network and Market Influence
Research shows Binance often served as a primary funder for emerging exchanges. Reed documents that Huobi’s initial exchange addresses were funded by Binance, while Binance also supported TUSD’s deployer wallet.
Additionally, connections with Multichain’s development team indicate ties to large-scale rug pulls. Reed states, “If you follow my research, you will recognize that Multichain’s Dev (and Binance) are connected to some of the most prolific rugs in Crypto.” These revelations imply a network where funds move freely, often bypassing standard oversight.
Furthermore, Binance and Crypto.com also seem to share Ethereum addresses. It is also important to note that the previous Binance CEO for Turkey also owns equity in FTX Turkey, pointing to further connections. However, Reed also indicates that such connections can result in affiliated members of the Chinese Communist Party.
