Binance.US denied the claims made in a previous article by Reuters, which said that a global exchange had purportedly transferred $400 million out of an account that belonged to the American subsidiary.
According to Binance.US, such access to the platform'splatform's bank accounts was restricted to only the platform'splatform's executives.
Binance.US Transferred $400 million out of the company per a report from Reuters
A report that Reuters published (1) on Thursday (Feb. 16, 2023) asserted that bank statements and company mail confirmed that in the first quarter of 2021, the world'sworld's largest cryptocurrency exchange, Binance, transmitted over $400 million from a Binance.US bank balance at Silvergate to a trading company named Merit Peak.
The publication claims that the CEO of the trading company, Changpeng Zhao, also known as "CZ," was identified as the company's management.
Binance.US, on the other hand, has stated in a tweet that the claim needs to be updated and updated without providing any further specifics.
Even though the American affiliate confirmed Merit Peak'sPeak's existence, the company declared that the market maker would no longer be operating on the platform beyond 2021.
The tweet (1) went on to emphasize that only the company's leaders were authorized to access the company's bank accounts, and it added:
"Binance.US has never engaged in customer commerce. Binance.US always keeps a reserve ratio of one to one, subject to frequent audits and compliance management by government entities."
The company also stated that its leadership team comprises ex-employees from top US regulatory agencies such as the SEC, the DoJ, the Federal Reserve Bank of New York, and the FBI, all of which ensure adherence to laws and regulations of the United States.
In the meantime, it appeared that employees at the management level at Binance.US were oblivious to the transactions, as mentioned in the Media report, with texts uncovering that the outflows occurred without the executive's knowledge.
Binance Has been in News Recently
Binance, which is not authorized to conduct business in the United States, has maintained throughout the years that Binance.US is a separate organization from the international trading platform.
Even though the alleged transfers provide evidence of mixing of funds, Reuters reported that it could not determine whether or not the money in question belonged to consumers of Binance.US.
Importantly, Silvergate Bank has appeared in the headlines recently and is currently the subject of an investigation by regulatory authorities about its business relations with the defunct cryptocurrency exchange FTX.
It was reported in February 2022 that the Securities and Exchange Commission (SEC) was conducting an inquiry into Merit Peak for its connections to Binance.
Binance is another cryptocurrency exchange that has come under scrutiny from regulators recently. The company recently admitted to regulatory compliance issues and is eager to negotiate a resolution with US officials.
