Can Binance Manipulate Crypto Prices Like FTX? Binance’s Co-Founder Answers

He Yi, co-founder and chief marketing officer of Binance, on Tuesday said the crypto exchange has strict internal control over crypto trading by employees. After buying cryptocurrencies, employees must hold them for more than 90 days before they decide to sell their holdings. The statement comes in response to the recent misappropriation of customer funds by FTX and Alameda Research.

Binance Has Strict Internal Controls

During the Hong Kong Web3 Innovators Summit on January 10, Binance’s co-founder He Yi revealed that they didn’t know about the misappropriation of customer funds by FTX. Binance’s decision to sell FTT tokens was taken as FTX was spending too much money. However, the seriousness of the problem became clear as things unfolded.

Answering the question of whether internal fund transfers can happen on Binance, she explained that the crypto exchange has a strict internal control policy.

Regardless of level, no employee is allowed to conduct personal short-term cryptocurrency transactions. After buying a cryptocurrency, employees must hold the position for more than 90 days before trading. Therefore, it helps prevents the possibility of market manipulation and insider trading by its employees.

Furthermore, He Yi revealed that Binance is moving ahead with the Industry Recovery Initiative (IRI). The crypto exchange has shortlisted some projects eligible for funding. Moreover, Binance plans to use funds for two large transactions, targeting two trading platforms.

Recently, the crypto exchange welcomed Terra Classic developers to apply for the Industry Recovery Initiative (IRI). Developers wanting to continue to build the Terra Classic chain may receive support from Binance as part of the initiative. Many LUNC developers are planning to apply for Binance’s initiative, confirmed influencers Classy Crypto and DemonMonke777.

Crypto Market Remains Stuck

After a crypto market recovery on Monday, Bitcoin and Ethereum prices remain stable above $17,000 and $1,300, respectively. However, altcoins pared gains and fell on Tuesday ahead of Fed Chair Jerome Powell.

While traders await a massive recovery in 2023, FTX contagion to DCG and Genesis is key to look out for in the coming weeks. Moreover, a pivot by the U.S. Federal Reserve can confirm bull market conditions.

Also Read: Coinbase CEO Brian Armstrong Announces 20% Additional Layoff

Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.