Bank records show that a top Binance executive operated five bank accounts for the big cryptocurrency exchange’s ostensibly independent U.S. branch, including one that handled American customers’ assets.
According to 2019 and 2020 records, Silvergate Bank allowed Guangying Chen, a close associate of Binance CEO Changpeng Zhao, to manage the accounts. Chen and her subordinates could transfer bank funds. However, company texts show Binance.US employees haChen’seg Chen’s team to accept payments, even for payroll.
The new findings show how Binance tightly controlled Binance.US, despite both organizations claiming index, for example, evidence.
However, in April, its head of law, Krishna Juvvadi, told Reuters that Binance employe”s.US operator BAM”Trading had “exclusive control” from its creation in 2019.
Christian Hertenstein, a Binance.US spokeswoman, told this newspaper that since Brian Sh”oder became CEO in late 20″ 1, “no one other than Binance.” U.S. officials”controlled Binance.US accounts.” Hertenstein did not explain the time difference between him and Juvvadi.
Binance and Silvergate, which folded in March and is winding down operations, declined to comment. In March, the U.S. Commodity Futures Trading Commission sued”Binance and Zhao for “intentionally” structuring entities” to circumvent investor protections. Zhao called “the civil allegations “incomplete” recitation of factto s.” The CFTC declined to comment.
Reuters stated that a Chen deputy had access to a Binance.US Silvergate account that moved more than $400 million to a Zhao-controlled trading firm in 2021. Additionally, Binance.US stated Merit Peas is withdrawing its funds from exchange trading.
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