Binance, one of the world’s largest cryptocurrency exchanges, has reportedly moved $400 million from its US partner to a trading firm managed by the company’s CEO Changpeng Zhao (CZ). The move was made without the knowledge of the US partner, according to a report by Forbes.
The report, published on Wednesday, revealed that Binance US, the American arm of the exchange, sent $400 million worth of the cryptocurrency Tether (USDT) to Binance Holdings Limited, a trading firm registered in the Cayman Islands and managed by CZ. The transfer was made in October 2019 but was only recently discovered by Forbes through leaked documents.
The move has raised concerns about the transparency and accountability of Binance, particularly as the company has been facing increasing regulatory scrutiny in recent months. Binance has come under fire from regulators in multiple countries, including the US, UK, and Japan, over concerns that it may be facilitating money laundering and other illegal activities.
According to Forbes, the transfer was made as part of a deal between Binance US and Binance Holdings, in which the US arm agreed to purchase $400 million worth of Tether from the trading firm. However, Binance US was unaware that the trading firm was controlled by CZ and only discovered this fact later on.
The move raises questions about the relationship between Binance US and its parent company, as well as the level of control that CZ has over the exchange. Binance has previously denied allegations of wrongdoing, but the recent report may further fuel concerns about the company’s operations.
In response to the report, Binance has issued a statement denying any wrongdoing and stating that the transfer was made following regulatory requirements. The company also emphasized that Binance US and Binance Holdings are separate entities with different management teams.
However, the report may add to the growing pressure on Binance from regulators and lawmakers around the world. The company has faced numerous challenges in recent months, including being banned from operating in several countries and having its bank accounts frozen in Malaysia.