The post The red flags of Axos, which banked CZ, Scott Purcell, and Alex Jones appeared on BitcoinEthereumNews.com.

Binance kept Binance US customers’ deposits in Axos Financial, the same bank used by convicted fraudster Reggie Fowler of Crypto Capital Corp, now-bankrupt Prime Trust, and InfoWars’ Alex Jones. However, despite a dubious client list, Axos hasn’t considered its exposure to the crypto industry as a relevant “risk factor” in its quarterly Securities and Exchange Commission (SEC) 10-K filings. But there are more red flags waving over Axos Financial like the fact that Prime Trust and Binance US’ parent company BAM Trading were Axos customers at the same time. But not only that: Prime Trust employed Ponzi-like business practices of using other customers’ assets to fulfill withdrawal requests to hide losses. Prime Trust filed for bankruptcy and its CEO admitted to losing $8 million in the Terra LUNA pyramid scheme. The SEC is suing Binance US’ founder for a litany of federal law violations. The SEC is also suing Terra founder Do Kwon and recently requested that he be extradited to the US. More specifically, Binance US and BAM Trading held over 10 accounts at Axos with some $377 million worth of customer funds as of May this year. It still held open accounts according to a more recent disclosure. That Axos voluntarily serves Binance as a customer is odd, particularly as the SEC is suing the parent companies of Binance US and Binance.com, as well as its founder, Changpeng Zhao. After the SEC sued Binance, US customers slowly withdrew funds and stopped using Binance US. Once popular, the exchange has embarrassingly downranked to 63rd among global exchanges. Consider another potential cause for concern. Axos permits crypto companies to avoid the Federal Reserve’s bank wire system with its own intrabank funds transfer system called AxPay.  AxPay permits customers to transfer money 24/7 between accounts at Axos Financial. The system is…

---

Filed under: News - @ October 9, 2023 2:16 pm