The bomb Binance claim came from the SEC today. An SEC official states that Binance sent approximately $20 billion to Paxos in 2021. But he claims to have mixed funds in used bank accounts. Let’s look at the details.
Bomb Binance claim
The statement is made by Sachin Verma, the Commission’s Deputy Chief Accountant. Accordingly, he claimed that Binance sent approximately $20 billion in mixed funds to a foreign subsidiary of stablecoin issuer Paxos in 2021. In a June 7 court filing, Verma says that Binance and its CEO, Changpeng Zhao, did an account check. Accordingly, he stated that he controlled several accounts at the defunct Silvergate and Signature Banks, which were used to process various transactions involving companies owned by Zhao.
In the statement, under the name of BAM Trading, Binance.US and some other Binance-related accounts were transferred from Merit Peak Ltd accounts from Silvergate Bank. He allegedly sent millions of dollars to a trading firm called Merit Peak is a British Virgin Islands company owned by Zhao. According to the information in the file, he described the nature of his business as an OTC desk and proprietary trading of digital assets. He also closed his Silvergate account in mid-2022.
Approximately $20 billion in foreign subsidiary of Paxos
Prior to the account closing, Verma noted that “millions of dollars from Binance-related accounts were mixed into Merit Peak’s accounts” and were later transferred to a foreign subsidiary of stablecoin issuer Paxos.
Let’s take a closer look at the transactions of the accounts between 2019 and 2021 as Kriptokoin.com. It was seen that Merit Peak received $22 billion from various accounts related to the exchange, including $1.2 billion from Binance US. During this period, the trading firm transferred $21.6 billion to this foreign subsidiary of Paxos.
This statement confirms previous reports that the exchange was mixing funds from users in their bank accounts at Silvergate Bank. Binance repeatedly emphasizes that the reports are false. However, he has not yet made a statement on the matter. Meanwhile, Paxos is the issuer of the Binance USD (BUSD) stablecoin. In February, New York regulators ordered the stablecoin issuer to cease other issues of BUSD. Binance and Paxos also reject the SEC’s classification of BUSD as a security. These developments have obviously had a negative impact on the cryptocurrency world at the moment. Almost everyone is talking about these moves of the SEC. It is also on the agenda for the community that America will seriously hit cryptocurrencies. However, it should be noted that the issue is focused on the USA. Because Binance currently operates on a global basis. Even if it is banned in the USA, it will continue to operate in other countries of the world.
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