[dropcap]T[/dropcap]he Securities and Exchange Commission accused the largest cryptocurrency exchange platform, Binance of unlawful transactions. CEO Changpeng Zhao is accused, among other things, of deception and conflict of interest.
The largest cryptocurrency
Changpeng Zhao, the co-founder and chief executive of Binance, has been accused of
The SEC tweeted about its decision to file charges against Binance Holdings Ltd. (Binance), US-based independent affiliate, BAM Trading Services Inc., and their founder, Changpeng Zhao, with a variety of securities law violations.
In the tweet, the regulatory body shared a seemingly incriminating quote from CCO Noah Perlman to another Binance compliance officer in December 2018. “We are operating as a ***** unlicensed securities exchange in the USA bro,” it said.
The agency accused Zhao of secretly controlling Binance US as part of a “web of deception” to evade laws and said that until at least December 2020, Binance US staff “did not have any ability to control” the company’s bank accounts.
Zhao and Binance publicly claimed that US customers were barred from transactions on Binance.com, but the platform “secretly” allowed high-value customers to keep trading, the SEC said.
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image: Hugo Amaral/SOPA/ picture alliance
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What do the records say
According to an exclusive Reuters news agency report, bank records reveal that Guangying Chen, a senior executive at Binance, was the primary operator of five bank accounts associated with Binance.US — the US affiliate of the cryptocurrency exchange.
These accounts, including one holding funds from American customers, were authorized for operation by US lender Silvergate Bank in 2019 and 2020, as per records.
This authorization granted Chen and her team the ability to transfer funds within these bank accounts. Communication within the company indicates that employees at Binance US had to seek approval from Chen’s team even for basic financial transactions, such as covering the firm’s payroll.
These newly revealed details shed light on the extent of Binance’s control over Binance US, despite claims from both entities that they operated independently.
The previously undisclosed bank records and messages demonstrate how Binance’s management exerted influence over the financial affairs of the U.S. affiliate, utilizing its access to Silvergate bank accounts.
| Omolabake Oladipo | 5:07 AM (2 hours ago) |
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US regulator sues crypto exchange Binance for violating laws
7 hours ago
7 hours ago
The Securities and Exchange Commission accused the largest cryptocurrency exchange platform, Binance of unlawful transactions. CEO Changpeng Zhao is accused, among other things, of deception and conflict of interest.
The largest cryptocurrency exchange platform, Binance, is facing legal action by the United States Securities and Exchange Commission (SEC). On Monday, the SEC accused Binance of conducting financial transactions and providing services unlawfully without the necessary authorizations.
Changpeng Zhao, the co-founder and chief executive of Binance, has been accused of deception and conflict of interest, among other allegations.
The SEC tweeted about its decision to file charges against Binance Holdings Ltd. (Binance), US-based independent affiliate, BAM Trading Services Inc., and their founder, Changpeng Zhao, with a variety of securities law violations.
In the tweet, the regulatory body shared a seemingly incriminating quote from CCO Noah Perlman to another Binance compliance officer in December 2018. “We are operating as a ***** unlicensed securities exchange in the USA bro,” it said.
The agency accused Zhao of secretly controlling Binance US as part of a “web of deception” to evade laws and said that until at least December 2020, Binance US staff “did not have any ability to control” the company’s bank accounts.
Zhao and Binance publicly claimed that US customers were barred from transactions on Binance.com, but the platform “secretly” allowed high-value customers to keep trading, the SEC said.
What do the records say
According to an exclusive Reuters news agency report, bank records reveal that Guangying Chen, a senior executive at Binance, was the primary operator of five bank accounts associated with Binance.US — the US affiliate of the cryptocurrency exchange.
These accounts, including one holding funds from American customers, were authorized for operation by US lender Silvergate Bank in 2019 and 2020, as per records.
This authorization granted Chen and her team the ability to transfer funds within these bank accounts. Communication within the company indicates that employees at Binance US had to seek approval from Chen’s team even for basic financial transactions, such as covering the firm’s payroll.
These newly revealed details shed light on the extent of Binance’s control over Binance US, despite claims from both entities that they operated independently.
The previously undisclosed bank records and messages demonstrate how Binance’s management exerted influence over the financial affairs of the U.S. affiliate, utilizing its access to Silvergate bank accounts.
