Crypto crisis: Binance loses UK adviser as review of Exchange finances intensifies

After crypto exchange FTX went bankrupt last month following a deposit rush that exposed a deep hole in its balance sheet, prominent cryptocurrency advocates tried to distance themselves from the class. of assets.

When a large institution like FTX implodes, it takes others with it. It’s a normal phenomenon – a domino effect or a contagion – many say.

So it should come as no surprise when some people start packing from their place of work following the intervention of another company. fall. There could be other reasons.

As the cryptocurrency industry braces for more suffering from the FTX disaster, Binance said on Monday that Jo Johnson, brother of former UK Prime Minister Boris Johnson, has resigned from Bfinity’s UK advisory board. , a payment business unit launched by Binance. in September.

Binance founder Changpeng 'CZ' Zhao. Image: Business Insider.

Binance Board Advisor Leaves

Former Tory MP – also known as Lord Johnson of Marylebone – and Universities Minister has resigned as scrutiny of Binance finances increases, The Telegraph reported.

Tory is an abbreviation for a member of the Conservative Party in the UK, and it is interchangeable with “Conservative”.

In a statement released on December 19, Johnson revealed:

“I left the advisory board (of Bifinity) last week and have no affiliation with it or any related entity.”

Here is Reuters tweet about the report:

Binance founder Changpeng Zhao commented on the news, saying the company will continue with plans to establish a presence in the UK, despite investors withdrawing $6 billion in funds from the biggest crypto exchange. -currency in the world.

Johnson reportedly joined Bitfinity’s advisory board in September and left last week. According to Binance, Johnson’s resignation was more about “balancing his workload.”

Crypto total market cap stays below $800 billion mark at $769 billion | Chart:

Crypto Red Flags Made Johnson Quit?

Bifnity is based in Lithuania. Among its many services, it facilitates the exchange of fiat currency for cryptocurrency.

The Telegraph has revealed the former Conservative Party lawmaker quit when accountants identified potential irregularities in evidence of Binance’s reserves in light of negative opinions affecting the exchange, which then triggered a bank run.

His departure also comes as the ‘CZ’-led company struggles to gain regulatory approval to begin operations in Britain. Concerned about its transparency, the Financial Conduct Authority (FCA) prevented Binance from creating a UK division in 2021.

Binance has also had to deal with a report that the US Department of Justice (DOJ) may file its own criminal complaint against the exchange.

With Sam Bankman-Fried, the founder of FTX, facing criminal charges, cryptocurrency platforms are under more pressure than ever to embrace transparency.

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