Binance.US sent $400M to a partner firm managed by CZ

According to Binance.US, it has transferred about $404 million to a company controlled by Binance CEO Changpeng Zhao. February 16th Report from Reuters.

According to the report, Binance.US allegedly transferred millions of dollars from Silvergate Bank accounts to a trading firm called Merit Peak Ltd under the name of BAM Trading.

Merit Peak has appointed Binance CEO Changpeng Zhao as its manager. Binance and Binance.US had to operate separately from 2019. As such, the above transaction suggests that Zhao may have an inappropriate financial relationship with Binance.US.

Reuters even suggested that the deal implied that Binance controls the finances of Binance.US.Merit Peak is also a Binance.US dealer, citing the regulator. said the lack of disclosure on the matter created a conflict of interest. However, Reuters was unable to find the reason behind the transfer and was unable to determine whether the transferred funds belonged to the exchange’s customers.

The move will take place in the second half of 2020 to the first quarter of 2021. Around that time, former Binance.US CEO Catherine Corey suddenly left the company and took to social media. Reuters said today that Coley became aware of her unusual trading and that she questioned other of her Binance.US staff before she left the company.

Reuters obtained the information from private bank records and messages on Binance.US. Binance.US did not comment on the transaction, but told Reuters it had access to “outdated information.” Binance.US told Reuters that Merit Peak does not use its trading services. Merritt Peak activity ended on an unknown date, Reuters reported.

The connection between Binance.US and Merit Peak has been making headlines ever since. February 2022when it was reported that the US SEC was investigating various partners of the exchange.