Crypto exchange Binance Binance’s US partner has confirmed that a trading firm managed by Binance CEO Changpeng Zhao operated as a market maker on its platform. Crypto exchange Binance Reuters reported on Thursday that Binance had secret access to a bank account belonging to its purportedly independent US partner and transferred large sums of money from the account to the trading firm, Merit Peak Ltd.
The revelation that Zhao was running a market-making firm on Binance’s US platform calls into question the exchange’s compliance with US regulators.
Binance denies any wrongdoing. The CEO of Binance, Changpeng Zhao, has been caught operating a market-making firm on the Binance cryptocurrency exchange. According to Reuters, Zhao had secret access to a bank account belonging to Binance’s US partner and transferred large sums of money from the account to his firm, Merit Peak Ltd. However, Binance denies any wrongdoing.
When asked to comment on the allegations, a spokesperson for Binance.US referred CNN to its Thursday tweet, emphasizing the line that reads: “ONLY Binance.US employees have access to Binance.US bank accounts. Period.” This statement would seem to suggest that Binance.US is not connected to the global Binance exchange in any way, but the Reuters report paints a different picture.
In response to the allegations, Binance.US referred CNN to its Thursday tweet, emphasizing the line that reads: “ONLY Binance.US employees have access to Binance.US bank accounts. Period.” This statement seems to suggest that Binance.US is separate from the global Binance exchange, despite the fact that Binance.US is a subsidiary of Binance.
Binance transferred over $400 million from the account at California-based Silvergate Bank to Merit Peak between January and March 2021. This caused concern among the executives at Binance.US, who wondered why such a large sum of money was being transferred to Merit Peak.
A spokesperson for the global Binance exchange, which did not respond to Reuters’ questions for the article on Thursday, told CoinDesk that the transfers were “a Binance.US issue.”
The activities of crypto platforms’ market makers – firms that typically buy and sell assets at exchanges to deepen trading volumes – have come under growing scrutiny from U.S. financial regulators since the collapse of major exchange FTX in November.
The spokesperson for the global Binance exchange, which did not respond to Reuters’ questions for the article on Thursday, told CoinDesk that the transfers were “a Binance.US issue.” The activities of crypto platforms’ market makers – firms that typically buy and sell assets at exchanges to deepen trading volumes – have come under growing scrutiny from U.S. financial regulators since the collapse of major.
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