Binance CEO Chen Guangying reportedly managed five bank accounts for independent U.S. subsidiary from 2019 to 2020, Reuters report It was revealed on June 5, citing bank records.
Abandoned bank Silvergate Bank has reportedly authorized Mr. Chen as the “primary administrator user” of five bank accounts, including those holding funds for U.S. customers and accounts for corporate customers.
During this period, Binance.US staff processed payments and sought approval from the Chen team to cover salaries, Reuters quoted a company message.
Reuters reported that Binance mixed user funds with corporate funds in 2020 and 2021. Binance denied the report, calling it a “conspiracy theory.”
Binance.US Contradictory Statements
The new report contradicts previous claims that Binance.US operates independently of Binance. In April, Krishna Jubadi, general counsel at Binance.US, told Reuters that staff from exchange operator BAM Trading have exclusively managed bank accounts on the platform since 2019.
Following a new revelation, Reuters reported that a Binance.US spokesperson said current CEO Brian Schroeder has had full control and access to the account since he took over in 2021. reportedly said.
Binance and Binance.US have yet to respond of crypto slate Requests for comment at press time.
Binance faces increased scrutiny from multiple U.S. regulators over its compliance with local regulations.
The Commodity Futures Trading Commission (CFTC) has sued Binance and its CEO for violating commodity laws. Regulators alleged that the exchange illegally facilitated the trading of commodity derivative orders for US citizens.
The Department of Justice (DOJ) is also investigating cryptocurrency exchanges to see if Binance or its executives evaded sanctions over Russia’s invasion of Ukraine.
Meanwhile, the exchange denies wrongdoing and calls the CFTC lawsuit “unexpected and disappointing.” The exchange added that it complies with regulations and will continue to cooperate with regulators.
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