According to the recent revelations, Guangying Chen, a senior executive at the leading crypto exchange Binance, has been recognized as the key operator of the five accounts belonging the crypto giant’s US branch, Binance US. According to the bank records, Chen, a close acquaintance of Binance CEO Changpeng Zhao was given control of the accounts in 2019 and 2020.
As per the reports, the Silvergate Bank authorized Chen as the major operator of the accounts, permitting her to move funds held by the accounts. The employees of the Binance US were required to seek help from Chen and her team to proceed any payments.
However, Binance US asserted that the platform hasn’t operated its bank accounts. Despite Binance’s reluctance to comment further over the issue, the findings suggested that Binance had a complete control of its US affiliated branch. Also, the reports stated that the company’s management of the US finances extended across its accounts at Silvergate Bank.
Though Krishna Juvvadi, the Legal Head of Binance US previously reported that the Binance US operator BAM Trading held “exclusive control” since 2019, the Binance US spokesperson Christian Hertenstein recently told that “no one other than Binance.US officials have had control or access to Binance.US accounts”, as Brian Shroder took over the position of the chief executive.
Further, Juvvadi asserted that the recent allegations against Binance US that the firm transformed its customers’ funds to the trading firm Merit Peak were “simply not true”. Allegedly, more than $400 million were transferred from Binance US’ Silvergate Bank account to its trading firm. Binance affirmed that the customer funds couldn’t be mixed with the corporate funds adding that the customers were not making deposits but buying dollar-linked crypto tokens.
Over the past few months, Binance has been troubled with allegations and criticisms since the Commodity Futures Trading Commission (CFTC) accused that the firm and its CEO were trading unregistered crypto derivatives.
