The FBI Detected That Binance.US Transferred $400 Million to a Firm Managed by CZ: Reuters Report

Key Points: Binance.US transferred more than $400 million to Changpeng Zhao (CEO of Binance).
According to Reuters, Binance.US allegedly transferred many millions of dollars from a Silvergate Bank Account to a Merit Peak trading company under the name BAM Trading.
Changpeng Zhao, CEO at Binance, has been named manager of Merit Peak. Binance and its US branch had to operate independently since 2019.
Binance.US quietly transferred a large amount of cash to a trading firm linked to CEO Changpeng Zhao. According to Reuters, Binance.US has secretly transferred more than $400 million to a trading company managed by CEO Changpeng Zhao. This trading company is currently in operation. The SEC investigated the relationship between Binance and Binance. These transactions were conducted since 2020, according to Merit Peak. Changpeng Zhao, Binance CEO, was named its manager. Since 2019, Binance.US and Binance.US must operate separately. According to Reuters, the transactions indicate that Zhao controls Binance.US’s funds. It also mentioned that Merit Peak was a Binance.US dealer and cited regulators to claim there was a conflict because the information was not made public. Reuters could not determine if the cash moved was from exchange clients or the reason for the transactions. Reuters also found text that showed Catherine Coley, former Binance.US CEO, questioning the transactions and labeling them unusual. Shortly thereafter, Ms. Coley resigned from the company in April 2021 due to unknown reasons. After registering for an exchange account, US users will deposit USD through the Prime Trusts payment processor into the exchange’s account. Merit Peak will withdraw the USD amount and then transfer it to Key Vision, which is responsible for USD deposit transactions at the Binance exchange. The Binance exchange will then transfer the crypto to Merit Peak, which will be transferred back to Binance.US. Credit to the user account will then be credited by the exchange. A company representative denied that the transfer information was available, but declined to comment on the transaction. The information was gleaned directly from Binance.US private bank records and messages. Binance.US told Reuters it had accessed “outdated data” but declined to comment further on the transactions. Reuters reports that Merit Peak doesn’t use the company’s trading services and its operations ended at an unknown time. This was when news broke that the U.S. SEC was investigating the exchange’s many partners in February 2022. This brought out the relationship between Binance.US. According to the article, the company was originally subpoenaed in 2020 by the SEC. On February 16, Binance stated that it was willing pay fines to mediate investigations by US federal agencies. We encourage you to do your research before investing.Join us to keep track of news: NewsTags: BAM TradingBinanceBinance.USChangpeng ZhaoCZMerit Peaksilvergate bank