A recent report by Reuters raised eyebrows within the crypto community, as it stated that Guangying Chen, an executive at Binance, held significant control over five bank accounts associated with Binance’s US subsidiary, Binance.US. Considering Binance.US has consistently maintained its independence from Binance, this discovery challenges the veracity of those claims.
The bank records cited in the Reuters report revealed Chen was authorized by the now-defunct crypto lender Silvergate Bank to manage the accounts between 2019 and 2020. As a result, Binance.US had to rely on Chen and her team to process various financial transactions, including the firm’s payroll. This reliance seemingly disrupts the narrative of operational independence put forth by Binance.US.
On the other side of the coin, Christian Hertenstein, a spokesperson for Binance.US, has stated that there have been changes to the company’s practices. Hertenstein shared with Reuters that since Brian Schroder took over as CEO in late 2021, “no one other than Binance.US officials have had control or access” to the firm’s bank accounts. This statement suggests that Binance.US is working to establish a more clear separation between itself and its parent company.
However, it is worth noting that Changpeng “CZ” Zhao, the CEO of Binance, also serves as the chair and majority shareholder of Binance.US. This fact adds an interesting dimension to the issue of independence, as the two entities continue to maintain strong ties at the top. Moreover, recent reports indicate that Binance.US is exploring ways to reduce Zhao’s stake in the company in an effort to improve its standing with US regulatory authorities.
Yet, neither Binance nor Binance.US has responded to CoinDesk’s request for additional comments on the matter. As such, questions surrounding the true extent of Binance’s control over its US offshoot remain unanswered, leaving many to ponder the implications.
In summary, the revelation that a Binance executive wielded significant influence over Binance.US bank accounts has sparked concerns over the company’s proclaimed independence. While Binance.US purports that its operations are now solely within the hands of its own officials, the ongoing connection to its parent company raises eyebrows and provides ample room for skepticism. It remains to be seen how these companies will navigate their relationship moving forward, especially with regard to appeasing the watchful eyes of US regulators.
Source: Coindesk
