Binance CEO CZ Secretly Accessed $400 Million User Funds: Reuters Report
Binance US Funds: In what could be yet another setback for crypto exchange Binance and its CEO ‘CZ’, latest reports suggest CZ secretly had access to $400 million worth funds supposedly believed to belong to Binance US users. This could prove to be fatal for Binance if proven to be true as the US Securities and Exchange Commission (SEC) is already tightening rules around user asset custodian services. The allegations of bank transfers from accounts belonging to Binance US follows the SEC’s restrictions of the BUSD stablecoin recently.
Also Read: Will This Recent Development Take Hedera (HBAR) Price Past $1?
Binance Moved $400 Million To Other Firm?
According to latest reports, Binance executives had secret access to a bank account belonging to Binance US, the exchange’s independent U.S. arm. The report said Binance had transferred the said amounts to a trading firm managed by CZ himself. The Reuters report cited having access to banking records and company messages that revealed these details.
Further to this, the transfers were initiated in late 2020 and over $400 million were said to have been moved to a trading firm, Merit Peak Ltd, which is managed by CZ. The transfers were made from a Silvergate Bank account belonging to the company than owns Binance US, in the first quarter of 2021. However, it is not known if the funds belonged to the Binance US customers or not. Also, since Binance also made it public that its user deposits are stored at Silvergate Bank, the exact reason for the transfer is yet to be known.
Also Read: Floki Listing On Binance Is Confirmed Sooner Or Later? Here’s Why
A new rule proposed by the SEC would bring under its purview the crypto exchanges, including them in the list of businesses that custody user assets. The rule could tighten regulatory requirements and stricter guidelines for permissions, effectively make it tougher for crypto businesses to survive in the country.
- How the Crypto Market Could React to the Next Fed Meeting on October 29?
- $1.68 Trillion T. Rowe Price Files for First Active Crypto ETF Holding BTC, ETH, SOL, and XRP
- Standard Chartered Predicts Bitcoin Could Drop Below $100K Amid U.S.–China Trade Tensions
- Rising Demand for Verifiable Crypto Ownership Drives Launch of Trezor Safe 7
- Robinhood Lists Binance Coin as BNB Outperforms BTC, ETH, SOL YTD By Over 30%
- XRP Price Classical Pattern Points to a Rebound as XRPR ETF Hits $100M Milestone
- Chainlink Price Eyes $27 Rebound as Whales Accumulate 54M LINK
- Pi Network Price Wedge Signals a Rebound as Key Upgrades Raise Utility Hopes
- Solana Price Eyes $240 Recovery as Gemini Launches SOL-Reward Credit Card
- XRP Price Prediction Amid Evernorth’s $1B XRP Treasury Plan – Can XRP Hit $5?
- Ethereum Price Targets $8K Amid John Bollinger’s ‘W’ Bottom Signal and VanEck Staked ETF Filing
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
