Crypto trade large Binance is denying allegations that it secretly moved massive sums of cash from its US affiliate to a buying and selling agency related to its CEO Changpeng Zhao.
A report by Reuters claims that between January and March 2021, a Silvergate Checking account named beneath Binance.US’s working firm BAM Buying and selling moved over $400 million to Benefit Peak, a market maker managed by Zhao himself.
Firm messages additionally present that the transfers, which started in late 2020, came about with out the data of Binance.US executives, in accordance with Reuters.
The report says it was not capable of decide if the money outflows concerned funds belonging to purchasers of Binance.US.
In response, Binance issued an announcement saying that it doesn’t have entry to financial institution accounts held by its unbiased US associate.
“ONLY Binance.US staff have entry to Binance.US financial institution accounts. Interval.
Whereas there was a market making agency named Benefit Peak that operated on the Binance.US platform, it stopped all exercise on the platform in 2021.
We record our aggressive and clear Market Maker program on our web site, which exhibits that companies pretty compete for rebates.”
The crypto titan additionally assures its clients that their funds are in good arms.
“Our management crew is staffed with former DOJ, SEC, FBI, and NYFed staff who’re dedicated to working a platform that’s secure and abides by U.S. legal guidelines and laws…
Binance.US has by no means – and can by no means – commerce nor lend out buyer funds.
Binance.US at all times maintains 1:1 reserves, and are topic to common audits and regulatory reporting by authorities entities.”
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