According to Reuters’ reporting, Binance had a U.S. partner transfer $400 million to a company headed by Zhao
According to a report by Reuters, Binance illegally moved over $400 million from the bank account of its U.S.-based partner to a trading business owned by Chief Executive Officer Changpeng Zhao.
Reuters, citing bank records and business messaging, said that during the first three months of 2021, funds were transferred from a Silvergate Bank account belonging to Binance.US to a trading entity called Merit Peak Ltd. According to the article, the payments began in late year of 2020.
Reuters said that it was unable to confirm whether or if the money were those of U.S. clients, as well as the motivations behind the transfers. It was stated by Reuters that executives at the US company were worried about the changes but had no idea they were being made.
The Block’s calls and emails to a Binance representative were not returned quickly. Binance sent a press release to Reuters.
U.S. Department of State spokeswoman Kimberly Soward claimed the media was using “outdated information,” but also avoided questions regarding the transfers. Reuters attempted to contact Binance Inc., the exchange’s parent business, as well as Zhao and Prime Trust, the custodian firm described as holding client cash for the U.S. exchange. According to Reuters, Silvergate said that the company does not discuss its clients’ identities.
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