![]() The SEC alleges that wash trading, or self-dealing, which typically results in an inflated trading volume that creates a false appearance of market interest, regularly took place on the Binance.US platform. Wash trades occurred with employees’ knowledge She told a fellow employee it was “for our independence,” according to the suit. I think most people understand that by now.”Ĭoley dubbed an effort to escape Zhao’s control as “Project 1776,” a reference to the American Revolution. He advised: “No need to pound the separation thing too much. resident, non employee on the bank applications.” Zhou replied “You know what HQ Finance’s position is, right?… They want to have Heina as signatory on US BAM bank accounts” Coley told company lawyer Wei Zhou in an electronic exchange: “I’m confused why we go through all of these measures with separating BAM vs.com and then have a non-U.S. The SEC alleged that for at least the first year of its existence, the parent company insisted that Zhao and Guangying Chen, a close associate of Zhao also known as Heina, had to control the bank accounts of BAM Trading, the U.S. Two former CEOs of Binance.US claimed that Zhao ran the American unitīrian Brooks, former chief executive of Binance.US who resigned three months after taking the job, said that “what became clear to me at a certain point was CZ was the CEO of BAM Trading, not me.” Binance has maintained that it operates independently from its American affiliate.īrooks added that during his tenure Binance.US had a group of Shanghai-based employees who received part of their compensations in Binance’s BNB BNB token and were part of a company called “Boran.”Ĭatherine Coley, the first chief executive of Binance.US–who abruptly left the company in 2021 and has been little heard from since– also revealed the subsidiary was not independent. Drawbacks listed in the 2019 audit included commingled customer and company funds, reliance on the parent for financial data and the lack of a disaster plan.Ī separate audit from FGMK shows that Binance.US lost $181 million in 2022. customer assets was completely opaque” to employees of BAM Trading, Binance.US’s operator. Since Binance.US’s inception and through at least 2022, auditors from Armanino have identified “significant deficiencies that aggregated to material weaknesses” relating to Binance’s control over the operation of the Binance.US Platform and custody and control of customer assets, and the fact that Binance’s custody of U.S. All user funds are accounted for, and never left the Binance.US (unless users withdraw themselves of course), ever." he wrote. And declining as users withdraw due to recent news. ![]() This number in USD equivalent fluctuates a little as crypto prices change. "To the best of my knowledge, Binance.US had in total roughly $2 billion in user funds. In a Twitter post on Thursday, Zhao denied the claim but only addressed the Binance.US part of the allegation.
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