Binance has been Caught Red-Handed Moving the Huge Amount from its US Partner
- Akansha Gupta
- February 17, 2023
- Crypto, News
- Binance, Blockchain, Crypto
- 0 Comments
Crypto exchanges have recently come under government scrutiny, eliciting mixed reactions from crypto enthusiasts. While some have welcomed and encouraged this development as a way to bring credibility to cryptocurrencies, others remain skeptical of increased regulation due to fears that it will stifle innovation in the space.
However, a recent incident has once again highlighted the need for scrutiny against crypto firms as Binance, one of the world’s leading cryptocurrency exchanges, has been caught red-handed transferring large sums of money from an independent U.S. partner’s account to a trading firm managed by CEO Changpeng Zhao.
The Binance US account had been registered under the name of their operating company, BAM Trading. These transfers were made in 2021, as indicated by the internal company conversation.
The Crypto player came under scrutiny after it was revealed that the exchange had made $400 million in transfer deposits. In response to the allegation, a Binance US spokesperson stated that the information is outdated and reiterated that only Binance US employees have access to the bank accounts.
The recent discovery also raised tension among Silvergate authorities
Binance’s recent transfer to Merit Peak via Silvergate Bank has also raised alarms among employees and management of the Silvergate Bank, as it is considered a breach of compliance rules.
Binance’s recent move indicates the crypto giant’s questionable practices and lack of transparency in its financial dealings, which can leave investors feeling uneasy.
While it may appear that Binance is operating within its legal rights, it seems clear that they have overlooked the human aspect of this issue, as many investors have found their trust betrayed by such covert activity.