Sign Up on MEXCReuters Accuses Binance For Controlling Bank Accounts Of Binance.US
Bank records reveal that “Guangying Chen (a senior executive at Binance) was the primary operator for several bank accounts linked to Binance.US,” Reuters reported, later being the the supposed independent U.S. affiliate of the cryptocurrency exchange. Chen and her team, closely associated with Binance CEO Changpeng Zhao, had the power to transfer funds within these accounts.
Binance’s Hold on Binance.US
These accounts, including one holding funds from American customers, were authorized for operation by Silvergate Bank in 2019 and 2020, as stated in the records from those years. “Chen and her team had the ability to move funds within these accounts,” evidenced by company messages indicating that Binance.US employees had to request Chen’s team to process payments, even for basic operational expenses such as payroll.
The newly discovered bank records challenge the notion of Binance.US operating independently from Binance. “The records and messages indicate that Binance maintained management control over the financial aspects of its U.S. affiliate,” specifically referring to its bank accounts at Silvergate Bank, as reported in the article. These findings expose the undisclosed level of access granted to Binance.
Binance.US had previously denied any involvement from Binance in managing its bank accounts. Krishna Juvvadi, the head of legal at BAM Trading, Binance.US’s operator, claimed in April that “employees of BAM Trading had ‘exclusive control’ since the inception of Binance.US in 2019.”
However, a Binance.US spokesperson, Christian Hertenstein, stated, “Since Brian Shroder took over as the company’s CEO in late 2021, ‘no one other than Binance.US officials have had control or access to Binance.US accounts.'”
Binance And Legal Woes
Binance has also been the subject of legal action by U.S. law enforcement and regulatory agencies. The United States Securities and Exchange Commission (SEC) has sued Binance Exchange and its Chief Executive Officer, Changpeng “CZ” Zhao for the violation of US securities laws.
Read CZ’s Response To SEC Lawsuit..
Commodity Futures Trading Commission (CFTC) sued the company in March for operating illegally in the U.S., though Binance has maintained that it does not serve American customers.
- First U.S. Spot Dogecoin and XRP ETFs Launch as REX-Osprey Debuts DOJE and XRPR
- Analyst Calls $6 XRP Target for November Amid Ripple CEO’s White House Stockpile Hint
- Ethereum Faces Selloff Risks As Whales’ Unrealized Profit Hits 2021 Highs
- Expert Predicts 138% Shiba Inu Rally as SHIB Futures Listing Opens Spot ETF Path
- Bitcoin Will 200x From Here, Twenty One Capital CEO Says as BTC Breaks $117K After Fed Rate Cut
- HBAR Price Prediction as SEC Approves Generic ETF Framework – Analyst Targets $1.80
- Toshi Coin Gains 57% in One Day: What’s Driving the Sudden Upside?
- Shiba Inu Price Set to Soar as Exchange Reserves Dive Amid SHIB ETF Chatter
- Pepe Coin Price Prediction as Whale Moves $25M From Robinhood- Is a Breakout to $0.00002 Next?
- XRP Price Prediction as Market Longs Hit 78% amid VivoPower Treasury Expansion Launch — Is $4 Next?
- SHIB Price Forecast: Taker Buys Lead as Developers Counter Shibarium Exploit
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.
