As markets, customers, and industry observers continue to analyze the massive SEC lawsuit against crypto giant Binance and its affiliates, startling new details continue to emerge.
Among the unexpected revelations buried within, 136 page complaint It is Binance.US. had significant relationships with Alameda Research through its over-the-counter trading desk.
This detail, hidden on page 55, exposes a previously obscure connection between two major players in the cryptocurrency world, adding another layer of intrigue to the legal battle.
The SEC mentioned Alameda Research only once this week on page 55, stating that the company was often the sole counterparty to OTC trading on Binance.US between May 2020 and February 2022.
The disclosure does not directly implicate Alameda Research or its CEO Sam Bankman-Fried in any wrongdoing in the Binance lawsuit, but it is included in the complaint against Binance and its affiliates. is likely to be accidental or insignificant.
The inclusion of Alameda Research in the complaint is particularly notable given the company’s existing legal issues. Alameda, a sister company of crypto exchange FTX, has come under intense scrutiny in recent months. The company’s CEO, Caroline Ellison, has already pleaded guilty to conspiracy charges, including wire fraud and securities fraud. Bankman-Fried is currently awaiting trial.
According to SEC documents, Binance.US’ OTC desk will see more than $654 million traded in 2021, primarily offering institutional traders large-scale crypto and fiat pair trading. It has become clear that The report also details Alameda Research’s involvement as a frequent counterparty in these deals through the platform’s OTC desk.
The inclusion of Alameda Research in the SEC complaint highlights the extent to which cryptocurrency companies and exchanges trade with each other. As authorities around the world step up their scrutiny of digital asset markets, the industry faces increasing pressure to improve financial regulatory compliance.
Post-Alameda Research was often the “only trading partner” on Binance. The US OTC desk was the first to appear on CryptoSlate.