One of the shareholders in Binance's U.K. subsidiary is lambasting the firm for falsely misrepresenting the shareholder's ownership stake in public filings.
Directors of Dimplx, a shareholder in Binance Digital, claim that Binance Digital Limited, a UK division of the international trading platform, submitted financial statements that were "grossly inaccurate."
Dimplx directors stated in an annual report filed with the U.K. companies registrar on Sept. 28 that "Binance Digital's turnover, assets, liabilities, including potential tax liabilities, net profits, nature of operations, and/or related party transactions" were not fairly represented.
This development was initially covered by The Financial Times.
The company's operations have been closely monitored by the UK's financial authority in particular because it is not permitted to conduct business there.
The largest cryptocurrency exchange in the world by trade volume, Binance is no stranger to controversy; it currently lacks a headquarters and has been issued warnings by regulators in the U.K., Japan, Uzbekistan, and Israel, among other countries.
The directors claimed in the Dimplx annual report that the audited Binance Digital financial statements for the period ending December 30, 2020 were inaccurate and wrongly reported the share capital granted to Dimplx. The report stated that the amended financial statements for the same period, submitted on Apr. 14, "remain unreliable for the purposes of determining the present fair value of Dimplx Limited's shareholding in Binance Digital."
To determine Dimplx's ownership position in Binance Digital fairly, the business will need an exact assessment of all transactions, profits, liabilities, and taxes linked with the subsidiary, according to the report, which also stated that it is in legal correspondence with Binance Digital.
"Dimplx Limited has reserved its right to obtain a court ordered valuation of its shareholding as well as its right to seek both ordinary and exemplary damages/ or an order directing an exchange of its shares at a value to be determined by order of court," the report said.
Binance revealed last week that $570 million was stolen in a breach of a token bridge connected to BNB Chain (formerly known as Binance Smart Chain).
In more than a dozen hacks this year, blockchain bridges have been used to steal more than $2 billion, reports Chainalysis.
BNB Chain validators coordinated their actions to halt operations in reaction to the exploit, which saw hackers create up to $110 million worth of new BNB tokens. Binance had already informed them about the attack.
