Binance.US Accused of Transferring $400M to Zhao-Linked Account Flagged by SEC
Binance.US allegedly transferred $400M+ to CZ's account, flagged by SEC. Executives claim unawareness. Binance denies, calls info outdated.
According to Reuters, Binance.US allegedly transferred over $400 million to an account connected to Changpeng Zhao. It is reported that the recipient account has been flagged by the SEC.
Reuters investigated Binance's banking records and company messages, revealing that the leading crypto exchange transferred a large sum of money to a trading firm managed by CZ. According to records reviewed by Reuters, over $400 million was transferred in the first three months of 2021.
Reuters also examined internal company messages and reported that Binance.US executives were unaware of the large money transfers. The newspaper also emphasized that the traceability of the transferred funds is currently unknown and that the transfers were only made to the trading firm, Merit Peak.
The possible connection between this trading firm and Binance.US has previously been investigated by the SEC. Additionally, Reuters was unable to determine whether the transferred funds included customer funds. Binance's statement suggested that the news agency was spreading disinformation, and also emphasized that Reuters' information was "outdated".