A recent report by Reuters suggests that a senior Binance executive, Guangying Chen, secretly operated five bank accounts belonging to the exchange’s independent U.S. affiliate, Binance.US. According to bank records, the accounts were active between 2019 and 2020, and one even held American customers’ funds. Despite repeated claims by Binance that its U.S. arm operates independently, this revelation could raise further questions about the relationship between the crypto exchange giant and its affiliate.
On one hand, Binance has consistently maintained that Binance.US is distinct, with exclusive access to its bank accounts. Notably, Krishna Juvvadi, the head of the legal department of the crypto exchange’s U.S. arm, has denied the claims made in the Reuters report and has asserted that Binance.US has always had full control over its finances since 2019.
On the other hand, messages reviewed by Reuters reveal that Binance.US employees allegedly had to ask Chen’s team to process payments, including payroll for its staff. The report also claims that Chen signed agreements with Silvergate Bank to act as the “Primary Admin User” for the five bank accounts, including an account for corporate clients that sent funds to Merit Peak, a trading firm controlled by Binance CEO Changpeng Zhao.
Binance and Binance.US are currently under investigation in the U.S. for a series of alleged crimes, including facilitating money laundering and tax offenses. As the largest crypto exchange globally by trading volume, these legal proceedings could cast a shadow on its future operations and prompt regulatory scrutiny.
Despite these investigations and the recent report by Reuters, Binance continues to dismiss all claims of wrongdoing. The exchange has labeled the investigation as mere FUD (fear, uncertainty, and doubt) against the company.
In conclusion, the current scenario presents a conflict between Binance’s assertions of an independent U.S. affiliate and the evidence suggesting potential control over Binance.US bank accounts by a senior executive. While it remains to be seen how these investigations will unfold, it is essential for crypto enthusiasts to stay informed about the latest developments and make informed decisions based on thorough market research. Ultimately, transparency and adherence to regulatory requirements will be crucial for the continued growth and success of the crypto ecosystem.
Source: Coingape
