According to a Reuters investigation, Binance.US, a supposedly independent US partner of Binance, secretly got access to the US partner’s bank account and transferred a sizable sum of money to a trading firm operated by Binance CEO Changpeng Zhao called Merit Peak Ltd.
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Documents show that during the first three months of 2021, more than $400 million was transferred from the California-based Silvergate Bank’s Binance.US account to Merit Peak Ltd.
The transactions were unknown to Binance.US executives, and it is still being determined why they were made.
According to company messages, merit Peak started getting transactions in late 2020, but Reuters needed help figuring out if any payments came from Binance.
The Key Vision Development Ltd, a Seychelles-incorporated business whose account included some funds, was a Silvergate client, according to an ex-Silgate executive who attested to this.
As part of their ongoing investigations into possible violations of financial laws, the Department of Justice and the Securities and Exchange Commission have asked Binance and Binance.US for information about their relationship. One of the things they are looking into is whether Binance is using the American exchange as a front for doing business.
According to Binance.US, its partnership with Binance.com is based on a shared brand and a technology licensing agreement and does not involve exchanging money.