The Similarities Between Binance and FTX

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There's a strong similarity there, I think, where the head of the company was operating the exchange but then also operating these trading firms that were trading on the exchange. There are some real concerns there around conflicts of interest. And it seems like there is actually some overlap between the employees of Binance and the employees of these trading firms as well. The SEC is alleging that the divide between these two platforms was not as real as the company was making it seem.

Paris Marx is joined by Molly White to discuss the Securities and Exchange Commission’s lawsuits against Binance and Coinbase and what they might mean for the future of the crypto industry.

Molly White is the creator of Web3 Is Going Just Great and a fellow at Harvard Library Innovation Lab. Follow Molly on Twitter at @molly0xFFF.

Tech Won’t Save Us offers a critical perspective on tech, its worldview, and wider society with the goal of inspiring people to demand better tech and a better world. Follow the podcast (@techwontsaveus) and host Paris Marx (@parismarx) on Twitter, and support the show on Patreon.

The podcast is produced by Eric Wickham and part of the Harbinger Media Network.

Also mentioned in this episode:

Tech Won’t Save Us was in the New York Times!
Molly wrote about the Binance and Coinbase cases for Rolling Stone. She also wrote about both cases in her newsletter.
Amy Castor and David Gerard broke down the Coinbase lawsuit.
Matt Levine has also written about the lawsuits and what it means for crypto being seen as a security.
In 2020, Forbes reported on the Tai Chi documents about Binance’s efforts to evade regulators.
Binance is also being sued by the CFTC and there are reports that criminal charges could also be coming from the Department of Justice.
Prometheum Capital registered to deal in crypto securities.
Binance recently withdrew from Canada.
Robinhood ended support for tokens the SEC listed as securities.
Crypto.com is winding down US institutional trading.
Nigeria’s SEC said Binance’s operations are illegal.
Elon Musk is being sued over manipulation of the price of Dogecoin.