cryptonews.com
The venture capital arm of the Binance crypto exchange issued a statement on Monday, clarifying that it did not partake in SkyArk Chronicles’ $15 million funding.
However, Binance Labs noted that it served as a strategic partner for the gaming platform during its incubation on its platform in 2021.
SkyArk Chronicles is a project incubated and invested in by Binance Labs in 2021 through Incubation Season 3; please note that Binance Labs did not participate in the project's latest financing round this year. Thank you all for your attention.
SkyArk Chronicles 是 Binance… pic.twitter.com/wqu2PBxKGE
— Binance Labs Fund (@BinanceLabs) January 29, 2024
Providing further details, the investment wing of the crypto exchange explained that it was unaware of the $15 million investment or the claim that it led the funding round before the blockchain multiverse project made the announcement.
Upon being notified of the situation, the team promptly contacted SkyArk Chronicles to rectify the misrepresented details surrounding the fundraising event.
However, the SkyArk Chronicles team only deleted the January 12, 2024 announcement without offering the necessary clarifications to its project community.
Over the past few years, Binance Labs has invested in hundreds of projects. As an investment firm, we always do our best to support the projects we invest in. Naturally, every investment firm hopes that their portfolio projects will develop well.
1) Under normal circumstances,… pic.twitter.com/CHRCHKdmbP
— Binance Labs Fund (@BinanceLabs) January 29, 2024
To substantiate its claims, the Binance Labs team shared screenshots of their conversation with the gaming platform, emphasizing that they became aware of the situation only after its users reached out.
Binance Labs also stated that its decision is based on the premise of ‘unilateral clarification,’ a principle it believes should be foundational for all collaborations within the rapidly growing Web3 ecosystem.
Binance’s Regulatory Run-in, Key Player Going Forward
SkyArk Chronicles is a triple-A blockchain gaming platform that immerses players in a multiverse created by the pseudonymous in-game god Satoshi Nakamoto.
Established in 2021, the Web3 gaming platform earned recognition by securing a spot in Binance Labs’ Incubation Program for Season 3, and it has continued to thrive since its inception.
As detailed in a now-deleted post on X from January 12, 2024, the Binance Labs team purportedly spearheaded the platform’s $15 million investment round, which drew participation from over 40 venture capital arms, including prominent names like BreedersDAO, LayerZero, Tangent Ventures, among others.
While Binance Labs has clarified its position on the matter, the other mentioned investors have remained silent.
On its end, SkyArk Chronicles has addressed the issue transparently in a post on X, expressing regret for the ‘miscommunication’ and acknowledging the subsequent clarification by the investment arm.
We are very sorry for the miscommunication and appreciate the clarification from Binance Labs.
We remain focused on making SkyArk a success and will continue working hard to achieve our vision.🫡 https://t.co/2ZbgCPXfLK
— SkyArk Chronicles (@SkyarkS) January 29, 2024
Meanwhile, Binance exchange is on a path to recovery following a tumultuous end to 2023.
In a surprising development from the US Department of Justice (DoJ), the crypto exchange faced criminal charges, including fraud, money laundering, and violations of the Bank Secrecy Act (BSA).
The investigation, which involved the Commodity Futures Trading Commission (CFTC) and two other US agencies, resulted in a $4.3 billion penalty imposed on the platform, leading to the ousting of its founder and then CEO, Changpeng Zhao.
Binance agreed to pay $4.3 billion to settle with the Department of Justice & the Commodity Futures Trading Commission over illicit finance breaches, founder Zhao pleaded guilty to breaking U.S. anti-money-laundering laws. But the SEC's case is still hanging over the exchange. https://t.co/XHVrT9ys1r pic.twitter.com/hDSBDjKyeN
— Temmy Samuel (@temmy4samuel) January 22, 2024
Under new leadership, with Richard Teng as the current CEO, Binance is navigating a new chapter in the Web3 space. Teng emphasized a commitment to regulatory compliance in the exchange’s first public statement.
Here is my first blog as #Binance CEO.
I want to take this opportunity to share immediate focus areas, discuss our responsibility to users and my view on the future of our industry.https://t.co/c6QMS6Ulmm
— Richard Teng (@_RichardTeng) November 27, 2023
This regulatory-minded approach has permeated the entire business ecosystem, leading to Binance Labs’ recent revelation of not backing SkyArk Chronicles’ latest fundraising endeavor.