Reuters: Binance.US Used Money Maker Run by CZ

Reuters Report Muddles Binance.US Independence

Recent reports from Reuters have called into question the independence of Binance.US after the US-franchise arm of the world’s largest exchange confirmed it used a money-maker firm managed by Binance CEO Changpeng Zhao (CZ).

Reuters reported in an exclusive report on February 16 that Binance.US transferred $400 million to a firm called Merit Peak Ltd. in the first three months of 2021. Reuters later reported on February 17 that it has internal communications from Binance.US which corroborate that Binance potentially had secret access to accounts on Binance.US.

This news would allegedly rupture the independence of Binance.US from Binance. The two are separate entities legally and could cause issues if they are seen as working hand in hand. The reports suggest that CZ could have even had backdoor access.

The reporting from Reuters seemingly prompted a tweet from Binance.US on February 16 which acknowledged operations with Merit Peak. Binance.US also confirmed to Reuters that it no longer does business with Merit Peak and that all connections ceased in 2021.

Regulators and critics have been hot after Binance. The world’s largest crypto exchange faces enormous scrutiny and its increasing market share has only drawn further probes.

Binance CEO CZ continues to repeat his mantra of ignoring FUD by tweeting the number 4, which hearkens back to his rules for 2023.

Binance is not allowed to operate in the United States and has taken a concerted effort to move away from the US market.

Increased regulatory pressures, specifically to its stablecoin BUSD operated by Paxos, have made the exchange initiate plans to move away from the coin. And the regulatory warpath appears to only have just begun.

What is Binance:

Binance positions itself as the world’s leading blockchain ecosystem and crypto-asset infrastructure provider with a financial product suite that includes the largest digital asset exchange by volume. The Binance platform aims to increase the freedom of money for users and features a comprehensive portfolio of crypto-asset products and offerings, including trading and finance, education, data and research, social good, investment and incubation, decentralization, and infrastructure solutions.

Where to find Binance:

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