Denying the allegations made by the SEC, on June 8th, Changpeng Zhao (CZ), the CEO of Binance, refuted claims that Binance US had transferred $12 billion of user assets to a company under his management.
In a tweet posted on June 8th, CZ stated that Binance US only had approximately $2 billion in user deposits in total. Therefore, the accusation that the exchange had transferred $12 billion in assets to the CEO’s personal company was false. CZ tweeted, “This is simply false. Not sure if it’s the journalist or the source.”
This is simply false. Not sure if it’s the journalist or the source.
To the best of my knowledge, https://t.co/hSHrrlF7o7 had in total roughly $2 billion in user funds. This number in USD equivalent fluctuates a little as crypto prices change. And declining as users withdraw due… pic.twitter.com/5dBPRaaNZN
— CZ 🔶 Binance (@cz_binance) June 8, 2023
According to CZ, all user funds are accounted for and have never left the Binance US platform, unless users themselves have initiated withdrawals. He mentioned that the total amount of funds may fluctuate slightly due to changes in cryptocurrency prices and the recent news may have led to some users withdrawing their funds.
CZ’s response came after the U.S. Securities and Exchange Commission (SEC) accused Binance of transferring $12 billion of user assets to the CEO’s personal company. This information was cited from a lawsuit filed by the SEC on June 5th. The SEC stated that the funds were sent to a company controlled by CZ through an intermediary platform called Key Vision Development Limited. The evidence for these allegations was disclosed in the testimony of Sachin Verma, a former accountant hired by the SEC.
Additionally, the SEC accused Binance of transferring around $12 billion to CZ’s company and $162 million to a company managed by Guangying Chen in Singapore, based on details from Verma’s banking partner reports. After filing a lawsuit against Binance and CZ for alleged violations of U.S. securities laws, the SEC requested that the court freeze the assets held by Binance, Binance US, and CZ.
It is important to note that these are allegations made by the SEC, and CZ has denied them. The court will ultimately determine the validity of the claims based on the evidence presented by both parties. The outcome of this case will have significant implications for the future of Binance and CZ’s involvement with the company.
Read more:
- SEC Charges Result In Billion-Dollar Losses For Binance And Coinbase CEOs
- Binance Diverts $12 Billion To Companies Controlled By CZ, SEC Alleges