- Binance.US sent $404 million to a firm managed by Binance CEO Changpeng Zhao.
- This transfer implies that Zhao has a possibly inappropriate financial connection to Binance.US.
- The SEC is investigating Binance.US and its partners for possible conflict of interest.
Details of the Transfer
In late 2020 and early 2021, Binance.US, under the name BAM Trading, sent millions of dollars from an account at Silvergate Bank to trading firm Merit Peak Ltd., which is managed by Binance CEO Changpeng Zhao. This could suggest that Zhao has a financial connection to Binance.US, raising questions about potential conflicts of interest between the two entities. It is unknown why these funds were transferred or if they belonged to exchange customers.
Catherine Coley’s Departure
Around the same time as the transfers took place, Catherine Coley—formerly the CEO of Binance US—suddenly left her role and went dark on social media. Reuters reports that Coley noticed these unusual transactions and questioned other staff members before leaving her position with the company.
The connections between Binance US and Merit Peak have been observed since February 2022, when it was reported that the U.S Securities & Exchange Commission (SEC) were investigating various partners associated with the exchange. The SEC had already issued subpoenas in 2020 regarding this matter and are continuing their investigation into possible conflicts of interest surrounding this case.