Binance.US has refuted a Reuters report that stated that an international exchange had moved $400 million from an American affiliate.
Binance.US clarified the situation by stating that only executive members of the platform have such access to their bank accounts.
Binance Supposedly Transferred $400 Million From Binance.
A report by Reuters Thursday, February 16, 2023: Company messages and bank records revealed that Binance, the crypto exchange giant, transferred more than $400 million from a Binance.US account at Silvergate to Merit Peak Trading in the first quarter 2021. According to the publication the trading company listed Changpeng Zhao (also known as “CZ”) as its manager.
Binance.US has however issued a statement via Tweet The report was inaccurate and out of date, the American affiliate stated without going into detail. Although the American affiliate acknowledged Merit Peak’s existence, the firm said that the market maker had stopped using the platform in 2021. Further, the tweet stated that only company executives could access bank accounts.
Binance.US has never and will not trade or lend customer funds. Binance.US maintains 1:1 reserves and is subject to regulatory reporting and regular audits by government agencies.
According to the firm, its leadership team includes former employees of top US watchdogs like the SEC, DoJ, Federal Reserve Bank of New York and Federal Bureau of Investigation (FBI), which ensure compliance with United States laws.
Nevertheless, it appeared that Binance.US’s top officials were not aware of the transfers. This is according to a Reuters report. Messages confirming that outflows occurred without executives’ knowledge are also included.
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Binance.US does not hold a license to operate in the United States. Binance.US has always maintained that Binance.US was an independent entity within the international platform. Although the supposed transfers may suggest a co-mingling, Reuters stated that it couldn’t tell if the money was owned by Binance.US customers.
Silvergate Bank, which has been in the news recently, is under investigation by regulators for its transactions with bankrupt cryptocurrency exchange FTX. Merit Peak was also reportedly mentioned. under investigation February 2022, by the Securities and Exchange Commission for its ties with Binance.
Binance, which has been on the radar of regulators for years, recently admitted that it had made a few mistakes in regulatory compliance and is ready to settle with US regulators.