Cointime

Cointime

Download App
iOS & Android

Binance US Reportedly Moved $400M to Trading Firm Linked to CEO CZ

Cointime Official

Crypto giant Binance US moved more than $400 million from its account to a trading firm managed by Binance CEO Changpeng Zhao over the first three months of 2021,  Reuters reported today, citing documents.   

According to Reuters, Binance.US, which is not licensed to operate in the US, allowed Binance to have secret access to its bank account, enabling large sums of money to be transferred from it to a trading firm managed by Binance CEO Changpeng Zhao. Binance’s banking records and company messages showed over $400 million from Binance.US account at California-based Silvergate Bank was sent in a series of transactions to trading firm Merit Peak. Merit Peak document named Binance CEO Zhao as Manager. Documents showed the transfers to Merit Peak began in late 2020. 

In February 2022,  Wall Street Journal reported The U.S. Securities and Exchange Commission launched a probe into potential connections between Binance.US and Merit Peak .  

Reuters reported that multiple executives from Binance.US showed concerns about the outflows because the transfers were taking place without their knowledge.

In late 2020, Catherine Coley, who was then the CEO of Binance.US, contacted a Binance finance executive to request an explanation for some transfers that she found surprising. She expressed in her message that the transfers were unexpected, and that nobody had informed her of them.

One of Coley's messages to the Binance executive inquired about the origin of the funds. According to a Reuters report, the Binance executive, Susan Li, did not provide a clear explanation of the transfers in her response to Coley. Instead, Li stated that Merit Peak was a vendor that facilitated trading on Binance.US and also provided loans and capital injections to the American exchange.

It was unclear why the transfers took place or whether the money belonged to Binance.US customers. The US Department of Justice and the Securities and Exchange Commission have requested information from Binance and Binance.US about their relationship.

Binance US CZ
Comments

All Comments

Recommended for you

  • LayerZero: Working with Nansen and others to write a Sybil Detection Report

    LayerZero Labs announced that it has been working with Chaos Labs and Nansen to compile a witch detection report. They will consider the total weighted transactions of each user in all LayerZero applications to ensure consistency between TGE, developers, and long-term users. The report will be released after the deadline for self-reporting witches.

  • Ethereum network gas fee drops to 4 gwei

    According to Etherscan data, the current gas fee on the Ethereum network has dropped to 4 gwei.

  • Yesterday, Grayscale GBTC had a net inflow of US$4 million, achieving net inflows for two consecutive days

    According to HODL15Capital monitoring, the trading volume data for Bitcoin spot ETF on May 6th is as follows: BlackRock IBIT 932 million US dollars, Grayscale GBTC 365 million US dollars, Fidelity FBTC 297 million US dollars, ARKB 66.08 million US dollars, BITB 52.4 million US dollars.

  • Asset Manager Hightower Buys $68 Million Worth of Bitcoin Spot ETF

    According to Watcher.Guru, asset management company Hightower with a management scale of 130 billion US dollars disclosed in an SEC filing that it has purchased a Bitcoin spot ETF worth 68 million US dollars.The company holds positions in 6 Bitcoin spot ETFs, specifically:Grayscale BTC: 44,838,000 US dollars (709,956 shares)Fidelity Bitcoin ETF: 12,410,000 US dollars (200,084 shares)BlackRock Bitcoin ETF: 7,621,000 US dollars (188,397 shares)ARK Bitcoin ETF: 1,702,000 US dollars (23,964 shares)Bitwise Bitcoin ETF: 988,000 US dollars (25,449 shares)Franklin Templeton Bitcoin ETF: 788,000 US dollars (19,129 shares)

  • 9 spot Bitcoin ETFs increased their holdings by a total of 3,710 Bitcoins on May 6

    Lookonchain monitoring data on May 6th showed that Fidelity added 1662 Bitcoins, worth about 105.7 million US dollars, and currently holds 151,241 Bitcoins, worth about 9.62 billion US dollars; Grayscale GBTC reduced holdings by 938 Bitcoins, worth about 59.66 million US dollars, and currently holds 291,239 Bitcoins, worth about 18.53 billion US dollars; 9 Bitcoin ETFs collectively added 3710 Bitcoins, worth about 236 million US dollars.

  • German state-owned development bank KfW plans to issue blockchain digital bonds with a minimum size of 100 million euros

    Germany's state-owned development bank Kredittanstalt fuer Wiederaufbau (KfW) plans to issue a blockchain digital bond with a minimum size of 100 million euros. Insiders revealed that the bond is expected to mature on December 31, 2025. KfW is reportedly in discussions with European institutional investors during the preparation phase over the next few weeks to allow investors time to become familiar with the transaction. The transaction is expected to be completed in the summer.

  • Cryptocurrency venture capital investment hit $1.02 billion in April

    According to Rootdata's data, in April 2024, the cryptocurrency industry attracted $1.02 billion in venture capital funding in 161 rounds of investment. This is the second consecutive month that financing has exceeded the $1 billion mark, bringing the total investment in cryptocurrency companies to $3.67 billion so far in 2024. Blockchain infrastructure companies alone have accumulated more than $1.7 billion in funding this year.

  • The 7-day average of Bitcoin’s hashrate has dropped and is currently slightly above 600 EH/s

    According to data from The Block, since the halving of Bitcoin block rewards, the 7-day moving average of Bitcoin's hash rate has slightly decreased and is currently slightly above 600 EH/s, but still at a historical high.

  • CFTC Chairman: Expected to Continue to Crack Down on More Cryptocurrency Companies

    Rostin Behnam, the chairman of the US Commodity Futures Trading Commission (CFTC), expects that as long as there is investor interest in the market, the regulatory agency will continue to crack down on cryptocurrency companies to protect investors from potential fraud and manipulation.

  • Farcaster's social client Kiosk completes $10 million financing, led by Electric Capital

    Farcaster's integrated social client Kiosk has announced the completion of a $10 million financing round on the X platform, led by Electric Capital, with participation from a16z Crypto, USV, and Variant Fund. Kiosk aims to promote community building and commerce within applications, enabling creators to establish communities, share rich media content, mint NFTs, interact with like-minded individuals, and seamlessly customize channel economics, while emphasizing the integration of on-chain assets into social interactions and envisioning a more inclusive and interconnected Web3 experience.

Daily Must-Read

Popular Activities

Delysium $AGI & AI Private Yacht Party

Delysium $AGI & AI Private Yacht Party

March 27 - March 27
Seoul

Popular Tags

Cointime
News
Contents
RSS
Company