The world’s largest crypto exchange, Binance, reportedly used access to an independent US partner’s bank account to move more than $400 million to a trading firm. This is evident from bank data and company news from the crypto exchange.
The money would have moved from California-based Silvergate Bank to trading firm Merit Peat, which is chaired by Binance CEO Changpeng Zhao, in the first quarter of 2021. According to Reuters, the filings showed that Binance’s U.S. account was registered under the name of BAM Trading, the operating company of the U.S. exchange.
The crypto giant’s spokeswoman did not respond to Reuters’ questions about the transfers detailed in the bank’s records. In a statement, she said only that the reporting used outdated information and added, “Merit Peak does not trade on the Binance platform or provide any services.” According to the information, only Binance employees have access to US bank accounts. company.
Part of the money flowed to the Seychelles
Reuters could not find out what became of the $400 million. An unspecified portion of the money was later transferred to the Silvergate account of a Seychelles-based company called Key Vision Development Limited, according to a person familiar with the matter and with direct knowledge of the transfers.
Coverage for doing business in the US
The transfers of funds may indicate that global Binance exchange, which is not licensed to operate in the US, controlled the finances of its US entity, Binance.US. As a result, the US Department of Justice and the US Securities and Exchange Commission have asked the crypto exchange for information about their relationship as part of ongoing investigations into possible financial violations.
The authorities want to know if Binance is using the US exchange as a cover for transactions in the US.
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.