In 2020, Binance UK's subsidiary shareholder claims exchange was issued with 'grassly inaccurate' statements

In 2020, Binance UK's subsidiary shareholder claims exchange was issued with 'grassly inaccurate' st ...

The world''s largest cryptocurrency exchange is accused of publishing a grossly inaccurate annual report in 2020 by the co-owner of a Binance UK subsidiary called Dimplx. Financial statements for one of Binance''s UK firms do not accurately reflect its nature of its business, according to the directors of Dimplx, nor do they reflect its assets and liabilities, "in addition to potential tax liabilities and turnover. Dimplx, which was formed as part of a joint venture with Binance in 2019, made the allegation in its own

In Dimplex''s annual report for February 2021, company directors Simon Dingle and Joshin Raghubar allege several errors in Binance Digital''s 2020 financial statements. According to Binance''s statement, Binance Digital ended the year 2020 with about 100 million (roughly Rs. 919 crore) in "cash and bank balances," and the same amount was owed to "creditors."

The directors of Dimplex said they believed that the 100 million (approx. 919 crore) reflected balances kept "on behalf of Binance Digital customers who had visited" and would be "liable to pay transaction fees." However, the financial accounts indicated "zero turnover or fees" on client transactions recorded throughout the fiscal year.

Dimplx, a UK shareholder of the exchange, claims that information misfiling was deliberate and called into question financial statements for the period ending on April 14, 2022. As such, the shareholder has difficulties in "determining the actual fair value of Dimplx Limited''s shareholding in Binance Digital."

Binance has responded to the claims, stating to CoinDesk employees that it was not able to respond completely to the allegations and that it understands that the minority shareholders are dissatisfied with the fact that the joint venture did not succeed.

The fresh claim raises doubts about the role played by Binance''s global operations in the period preceding its announcement from the Financial Conduct Authority (FCA) UK''s financial regulatory body.

It is worth remembering that in June 2021, the FCA issued a consumer warning against Binance Markets, a UK subsidiary of the Binance group, which prohibited it from engaging in unlawful activity in the United Kingdom. Binance had failed to provide basic information about its operations, such as trading names and functions for all group entities globally.

The FCA said in February 2022 that it was concerned about the exchange''s partnership with Paysafe, which was triggered by a month of speculation about a partnership between Bifinity and EQONEX.