The SEC, which sued Binance for violating securities laws earlier this week, has made new allegations against the CEO of the exchange, CZ. Binance and its US arm, Binance.US, have sent $12 billion in client funds to CZ, according to court documents.
SEC suggests Binance CEO used client funds, with new documents
As you follow on Kriptokoin.com, Binance was sued by the SEC on June 5 for violating US securities laws. In recent developments, the SEC documents that Binance and its US arm, Binance.US, sent $12 billion in client funds to CEO CZ.
According to the SEC’s allegations, the transfers are based on records obtained from US banks Silvergate and Signature, which went bankrupt in March. Accordingly, Silvergate has provided more than $50 billion in deposits for Binance-related parties. Signature Bank, on the other hand, has traded more than $19 billion for Binance.
$12 billion flowed to CZ’s company Merit Peak
The Makeme file also reported that billions of dollars in client funds from both Binance platforms were mixed in an account operated by Merit Peak. Merit Peak is a market maker trading firm owned by Binance CEO Zhao. The SEC alleges that these funds flowing into the company were then transferred to a third party.
The US regulator also reported that it has been monitoring Binance.US since 2020. The regulator now wants to stop client funds in the US arm of Binance. In this context, the number of cryptocurrencies that can potentially be delisted from the stock market is over 250.
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