Global cryptocurrency exchange, Binance, had secret access to a bank account of its independent U.S. partner and according to banking records and corporate messages, huge sums of money were transferred from those account to a trading company run by Binance CEO Changpeng Zhao.
According to documents for the quarter, more than $400 million transferred from Binance.US account at California’s Silvergate Bank to this trading company, Merit Peak Ltd. in first three months of 2021.
Records show Binance.US account was registered under the name of BAM Trading, the U.S. exchange’s operating company. The transfers to Merit Peak started, according to company messages, in late 2020.
The reason for the transfer of money could not be determined yet. Binance.US spokesperson, Kimberly Soward said that “this is outdated information”. She added: “Merit Peak is neither trading nor providing any kind of services on the Binance.US platform” and “only Binance.US employees have access” to the bank accounts of the U.S. company.”
The money transfers suggest that the global Binance exchange, which is not licensed to operate in the United States, controlled the finances of Binance.US.
Also read: Elliptic, Binance, and Huobi Collaborate to Freeze Lazarus Group hack Funds
