Reuters 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.