Binance top exec reportedly controlled US subsidiary’s bank accounts between 2019 and 2020

Binance apical executive, Guangying Chen, reportedly controlled 5 slope accounts of its autarkic U.S. subsidiary betwixt 2019 and 2020, Reuters reported connected June 5, citing slope records.

The defunct slope Silvergate Bank reportedly authorized Chen arsenic the “Primary Admin User” of the 5 slope accounts, including 1 that held American customers’ funds and an relationship for firm clients.

During this period, Binance.US unit sought the Chen team’s support to process payments and screen its payroll, Reuters cited institution messages.

Reuters reported that Binance commingled idiosyncratic funds with firm funds successful 2020 and 2021. Binance denied this report, calling it a “conspiracy theory.”

Binance.US’ contradictory statements

The caller study contradicts earlier claims made by Binance.US that it operates independently of Binance. In April, Binance.US’s caput of legal, Krishna Juvvadi, told Reuters that unit of the exchange’s operator, BAM Trading, had exclusive power of the platform’s slope relationship since 2019.

With the caller revelations, Reuters reported that a Binance.US spokesperson said that the existent CEO, Brian Shroder, has had implicit power and entree to the accounts since helium took implicit successful 2021.

Binance and Binance.US were yet to respond to CryptoSlate’s petition for remark arsenic of property time.

Regulatory struggles

Binance faces accrued scrutiny from respective regulatory authorities successful the United States implicit its compliance with section regulations.

The Commodity Futures Trading Commission (CFTC) sued Binance and its CEO implicit commodities instrumentality violations. The regulator alleged that the speech illegally facilitated trading derivative orders connected commodities for U.S. citizens.

The Department of Justice (DOJ) is besides investigating the crypto speech to find whether Binance oregon its executives circumvented sanctions astir Russia’s penetration of Ukraine.

Meanwhile, the speech has denied wrongdoing and labeled the CFTC’s suit arsenic “unexpected and disappointing.” The speech added that it complies with regulations and would proceed cooperating with regulators.

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