Newly public crypto giant Coinbase (COIN) recently underwent IPO at $250 per share, it has since, for the first time, declined below IPO price of $250 to $231 per share.
Coinbase may seem great for new crypto investors but when you dig deeper, there is a problem with cryptocurrency exchanges like Coinbase — customer support and fraud.
This seems to be happening with most crypto exchanges including but not limited to:
- Coinbase
- Gemini
- Binance
- Bittrex
- Kraken
After doing research on these exchanges, it seems to me that it takes long weeks, and in some cases months for exchanges to resolve customer issues, many users are suspected that fraud is the motivator of this behavior. You don’t have to take my word, do a little research and you’ll find out.
The Government might start probing cryptocurrency exchanges
Binance is one of the exchanges mentioned earlier who barely has customer support. That exchange is now under probe by the U.S. Government for money laundering and tax evasion.
Officials interested in how crypto is being used for money laundering sought information from those familiar with Binance’s dealings, according to Bloomberg. However, the publication did not confirm whether the investigations were tied to criminal violations, claiming that not all inquiries stem from “allegations of wrongdoing.”
The Bitcoin exchange, which is not permitted to operate in the United States, has been dealing with money laundering charges for some time. According to a research report from blockchain forensics firm Chainalysis, Binance was the most popular destination for illegal cryptocurrencies in 2019.
Binance was founded in China, but was forced to move out of the country in the wake of a ban on crypto trading in 2017. It is now incorporated in the Cayman Islands, a notorious tax haven used by corporations and the wealthy to hide their finances.
