According to the SEC’s court filing, $12 billion worth of Binance client assets were transferred to the accounts of companies owned by CEO Changpeng Zhao (CZ).
U.S. Securities and Exchange Commission’s (SEC) to the court CZ allegations made against him. SEC, Binance and Binance.US, $12 billion client fund He accused it of transferring it to accounts and companies that CZ controlled. regulatory agency, funds Key Vision Development Limited through a holding company known as To firms controlled by Zhao Said it was sent.
The reason for the emergence of the allegations in question was determined by the judge. proof against request for ice cream it was requested. For evidence 12 billion dollars Presenting the details of the transfer, the SEC ensured the freezing of Binance.US assets. Crypto-friendly banks that bankrupted the SEC’s said information silvergate And from Signature achieved was emphasized.
SEC in forensic analysis of Binance and Zhao’s network of companies’ bank statements Zhao of $12 billionto the company and of $162 million in Singapore Guangying Chen a controlled to the company has been sent He claimed. Most of the funds sent to the SEC, Zhao and Chen are currently “offshore” He said it was in the accounts.
On the other hand, most of the funds are owned by CZ. Merit PeakSEC lawyers, who stated that it was transferred to at the center of events was emphasized. Allegedly, Merit Peak 2019 And 2021 achieved between the From $22 billion to $12 billion more, Binance and Binance.US to customers belonging were beings.
keeping track of assets SEC officials faced a remarkable detail in the next step of the business. According to the receipt records Merit Peak in the said company $22 billion majority of the funds are stablecoin issuers to Paxos transferred. At that time Binance USD (BUSD) Paxos, which has undertaken the issuance of February broke in the month.
It was stated in the court file that it could not be determined why a company belonging to CZ was trading publicly with such a large amount of assets:
We couldn’t understand why a Zhao-controlled entity would use it as a “pass-through” account for billions of dollars in Binance client funds.