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Changpeng Zhao Allegedly Receives $404 Million from Binance.US Trading Firm

Changpeng Zhao Allegedly Receives $404 Million from Binance.US Trading Firm

On February 16, Reuters reported that Binance.US, operating under BAM Trading, had transferred around $404 million from a Silvergate Bank account to a trading firm managed by Binance CEO Changpeng Zhao, named Merit Peak Ltd.

This transfer occurred in late 2020 and the first quarter of 2021.

The report suggests that Binance CEO Changpeng Zhao has a possible financial connection with Binance.US, even though the two have been operating separately since 2019. It also implies that Binance may have control over Binance.US’s finances.

According to regulators cited by Reuters, the lack of public disclosure on this matter has created a conflict of interest. However, Reuters could not determine the source of the transferred funds or whether they belonged to Binance.US’s customers.

The sudden departure of Binance.US’s former CEO, Catherine Coley, around the same time as these transactions raises further questions. Coley reportedly noticed the unusual transactions and questioned Binance.US staff before leaving the firm.

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Binance.US did not comment on the transactions but claimed that the information obtained by Reuters was outdated. Binance.US also stated that Merit Peak is not using its trading services, and Reuters reported that Merit Peak’s activities have since ceased.

This connection between Binance.US and Merit Peak drew attention in February 2022 when reports surfaced that the US SEC was investigating the exchange’s various partners, including Binance.US, which was first subpoenaed in 2020.

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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