Binance was controlling BinanceUS’s bank accounts: Report 

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A new report alleged that a single Binance officer was exclusively controlling five bank accounts of BinanceUS.

Binance is a global crypto trade platform & BinanceUS is an independent subsidiary of Binance. Since the launch of BinanceUS, Binance Exchange always tried to maintain a big separation between Binance & BinanceUS, to remain away from any kind of regulatory action. 

The latest report from Reuters alleged that Binance was only showing  that Binance & BinanceUS were operating services independently but in the backend, BinanceUS was significantly under the control of Binance.

On behalf of current bank records and messages, Binance senior executive, Guangying Chen, was controlling 5 bank accounts. All these bank accounts belonged to BinanceUS & one of the accounts was mainly for the customer’s deposit. 

As per the report, now-bankrupt crypto-friendly Bank Silvergate authorised Chen to exclusively operate these accounts from 2019 to 2020. In short, the Binance executive was holding full control of BinanceUS’s bank funds. 

However, evidence is showing that all such allegations are true that BinanceUS denied all these allegations & confirmed that Binance never controlled its financial deposit accounts.

Krishna Juvvadi, the head of legal at BinanceUS, spoke with Reuters on this matter in April of this year & said that BinanceUS’s bank accounts were in control of the BinanceUS executives since the launch of the BinanceUS exchange. 

While a BinanceUS spokesperson said that BinanceUS officials had control or access to the accounts since the company’s current CEO took over in late 2021.

Binance vs SEC, CFTC

In March of this year, the CFTC agency sued the Binance exchange & its CEO Changpeng Zhao (CZ) over unregistered derivatives trading services in the US. 

On 5 June, The US SEC also initiated charges against Binance, BinanceUS, & CZ over unregistered securities offerings in the US. 

Read also: $ONFO token founder found dead in US State Arkansas

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