Binance, the world's largest crypto exchange, faces a U.S. SEC lawsuit as its on-chain history unravels. TruthLabs founder Tyler Reed documented a series of links showing Binance acted as a primary funder for major exchanges including Coinbase and Huobi. Reed tweeted: "Did you know that all of @coinbase public exchange address' were originally funded/setup thru #binance and #crypto.com?"
Binance as a Source: Coinbase, Huobi Funded by the Giant
Reed's research shows Huobi's initial exchange addresses were also funded by Binance, and Binance supported the TUSD deployer wallet. These ties suggest a centralized flow of capital where Binance seeded its own rivals. Analysts warn that if Binance suffers liquidity stress, the entire system could face compression.
From FTX to Multichain: Hidden Currents in Binance's Network
Binance's on-chain web extends to former FTX affiliates, leveraged token deployers, and risky developers. Reed stated: "If you follow my research, you will recognize that Multichain's Dev (and Binance) are connected to some of the most prolific rugs in Crypto." Multichain, once a prominent cross-chain bridge, collapsed after its team drained funds. Binance's link to that team indicates money moving without standard oversight.
Moreover, Binance and Crypto.com share Ethereum addresses, and the former Binance CEO for Turkey holds equity in FTX Turkey. Reed hinted that these connections may lead to affiliated members of the Chinese Communist Party, though no direct evidence was provided. The disclosure adds geopolitical tension to Binance's ongoing legal battle.
Binance has not yet responded to these on-chain findings. The SEC case centers on whether Binance violated U.S. securities laws, but the chain's transparency is forcing the market to re-examine the underlying network structure of crypto.