Binance.US despatched roughly $404 million to a agency managed by Binance CEO Changpeng Zhao, in response to a Feb. 16 report from Reuters.

That report alleges that Binance.US, beneath the identify BAM Buying and selling, despatched hundreds of thousands of {dollars} from an account at Silvergate Financial institution to a buying and selling agency referred to as Benefit Peak Ltd.

Benefit Peak names Binance CEO Changpeng Zhao as its supervisor. Binance and Binance.US have been required to function individually since 2019. As such, the above transactions suggest that Zhao has a probably inappropriate monetary connection to Binance.US.

Reuters went so far as to counsel that the transactions suggest that Binance controls the funds of Binance.US. It additionally mentioned that Benefit Peak was a vendor on Binance.US and, citing regulators, mentioned that lack of public disclosure on the matter created a battle of curiosity. Reuters was, nonetheless, unable to search out the rationale behind the transfers and was unable to find out whether or not the transferred funds belonged to change clients.

The transfers occurred in late 2020 and the primary quarter of 2021. Round that point, Catherine Coley, who previously served as Binance.US’ CEO, all of the sudden left the corporate and went darkish on social media. Reuters mentioned in the present day that Coley observed the bizarre transactions and questioned different Binance.US employees on the matter earlier than leaving the agency.

Reuters obtained its info from Binance.US’s personal financial institution information and messages. Binance.US didn’t touch upon the transactions however instructed Reuters that it had accessed “outdated info.” Binance.US instructed Reuters that Benefit Peak isn’t utilizing its buying and selling providers. Reuters mentioned Benefit Peak’s actions ceased at an unknown date.

The connection between Binance.US and Benefit Peak has attracted consideration since February 2022, when it was reported that the U.S. SEC was investigating the change’s varied companions. That report says that the SEC first subpoenaed Binance.US in 2020.