Revealed: Binance’s Influence Over Affiliate Binance.US Bank Accounts Raises Concerns

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Bank records have surfaced, revealing that Guangying Chen, a senior executive at Binance, was the primary operator for several bank accounts associated with Binance.US. According to Reuters, Chen and her team, closely connected with Binance CEO Changpeng Zhao, had authority over the transfer of funds within these accounts. This new information has raised concerns regarding Binance’s influence over its supposed independent U.S. affiliate.

In 2019 and 2020, Silvergate Bank authorized these accounts, including one containing funds from American customers. Company messages suggest that Binance.US employees had to request Chen’s team to approve payments for even basic operational costs such as payroll. These findings put into question Binance.US’s claims of independence from its parent company.

Previously, Binance.US had denied any involvement from Binance in the management of its bank accounts. Krishna Juvvadi, the head of legal at BAM Trading, Binance.US’s operator, claimed in April that since the company’s inception in 2019, its employees had “exclusive control.” However, a Binance.US spokesperson, Christian Hertenstein, stated that only Binance.US officials have had control or access to Binance.US accounts since Brian Shroder became the company’s CEO in late 2021.

The disclosure of Binance’s involvement in Binance.US adds a new layer of scrutiny as the company grapples with legal action by U.S. law enforcement and regulatory agencies. The United States Securities and Exchange Commission (SEC) has sued Binance Exchange and its CEO, Changpeng “CZ” Zhao, for violation of U.S. securities laws.

Additionally, the Commodity Futures Trading Commission (CFTC) sued Binance in March for operating illegally in the U.S. Binance has maintained that it does not cater to American customers, but the recent discovery of its influence over Binance.US bank accounts casts doubt on that assertion.

These revelations highlight the importance of transparency between companies and regulatory bodies in the crypto industry. It remains to be seen how the ongoing legal disputes and new insights into Binance’s control over Binance.US will impact both companies’ futures. Regardless, enthusiasts and investors alike must proceed with caution and conduct thorough market research before making any investment decisions in the cryptocurrency space.

Source: Coingape

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