According to a recent development, a top official at Binance, a famous cryptocurrency exchange, was the main operator for multiple bank accounts belonging to its autonomous US branch. According to these bank documents, the executive, Guangying Chen, who is close to Binance CEO Changpeng Zhao, had influence over these accounts as early as 2019.
According to the records, Chen was permitted to administer these accounts by US lender Silvergate Bank. It also featured the one that kept the fund for American customers. This enabled Chen and her colleagues to transfer funds within these accounts for normal duties such as payment processing.
Despite statements from Binance and its US affiliate that they operate independently, the recent findings point to something else. They demonstrate Binance’s dominance over US business finances. Previous allegations suggested that Chens’ subordinate had access to one of Binance’s US Silvergate accounts. In 2021, they moved over $400 million to a trading entity controlled by Zhao.
Binance.US has rejected Binance’s participation in its bank accounts. However, a spokeswoman for Binance.US admitted that since the hiring of its current CEO, Brian Shroder, in late 2021, only Binance.US staff have had access to the accounts.
🚨🔒 Bank records reveal @binance ‘s secret control over #US affiliate’s accounts!
— Walletor (@walletorapp) June 5, 2023
These occurrences raise questions about Binance’s governance and interaction with regulators. In March, the US Commodity Futures Trading Commission charged Binance and Zhao with suspected commodity law violations. Binance is under strict control. The company’s financing in the United States enabled Zhao to oversee the company’s progress in the American crypto market while keeping it distinct from Binance.
The precise ramifications of these findings are unknown, but they shed light on Binance’s complicated linkages and control mechanisms. As investigations continue and regulatory scrutiny intensifies, the blockchain industry as a whole may face growing demands for transparency.
Conclusion
It is critical for investors and customers to regularly monitor these changes in order to ensure the integrity and security of their cryptocurrency investments. Because the world of cryptocurrencies is always changing, you should always stay up to date with the most recent information.
