Binance Accused of Misfiling Inaccurate Financials


Multiple Crypto platforms and companies have been in legal trouble in 2022. Binance has seen its share of controversies, including a recent hack of its BNB Chain. However, in the latest news, the world’s largest crypto exchange is being accused of filing inaccurate financials. The allegation comes from its UK shareholder, Dimplx Limited.

Binance Digital Limited, a U.K. subsidiary of the global trading platform, filed “grossly inaccurate” financial statements, according to directors of Dimplx, a shareholder of Binance Digital. The report comes from The Financial Times.

Binance Dimplx
Source: Crypto News

“Binance Digital’s turnover, assets, liabilities, including potential tax liabilities, net profits, nature of operations and/or related party transactions, were not accurately represented,” Dimplx directors say in an annual report from Sept. 28 with the U.K. companies registrar.

In the Dimplx annual report, Binance Digital’s financial statements for the period ending on Dec. 30, 2020 were inaccurate and incorrectly recorded the share capital allotted to Dimplx. Correspondingly, the shareholder alleges that this was on purpose.

In addition, Amended financial statements for the same period filed on April 14, 2022 “remain unreliable for the purposes of determining the present fair value of Dimplx Limited’s shareholding in Binance Digital,” according to the report.

As a result, a Binance spokesperson has spoken via email to CoinDesk to respond to the allegations:

“In light of threats of litigation from the minority shareholders, Binance is not able to respond fully to the allegations. However, we understand that the minority shareholders are disappointed that the joint venture did not bear fruit.”.

Binance Representative

Nonetheless, the platform’s CEO has yet to respond to the allegations.