- Binance CEO, Changpeng Zhao “CZ”, staunchly dismisses allegations of redirecting $12 billion in user funds to another business he oversees.
- US Senators Elizabeth Warren and Chris Van Hollen have urged the US Justice Department to probe into Binance following the SEC’s complaint.
Binance CEO Changpeng Zhao, popularly known as “CZ”, has forcefully countered allegations that he diverted up to $12 billion in user funds to Merit Peak, a company purportedly under his control. This response came on the heels of reports suggesting illicit movement of customer funds, further intensifying the scrutiny on the crypto exchange.
This saga continues to unfold against a backdrop of heightened regulatory oversight. US Senators Elizabeth Warren and Chris Van Hollen have requested the US Justice Department to delve into Binance’s dealings, a move precipitated by the US Securities and Exchange Commission’s (SEC) formal complaint.
The SEC’s legal action posits that Binance has not only engaged in the unregistered offer and sale of securities but has also commingled investor funds with the company’s own assets. Coincidentally, this development trails a similar lawsuit filed against Coinbase, another leading crypto exchange.
In the face of these tumultuous accusations, CZ has moved swiftly to provide reassurances regarding the security and transparency of user funds. Addressing the SEC lawsuit’s insinuations about the depletion of user funds, CZ insisted that all user funds are accounted for and no unauthorized transactions have been conducted.
“To the best of my knowledge, Binance.US had in total roughly $2 billion in user funds. All user funds are accounted for, and never left the Binance.US platform (unless users withdraw themselves of course), ever.”
This categorical statement aims to dispel growing concerns and foster a sense of stability among the platform’s user base.
In line with his previous approach to situations causing fear, uncertainty, and doubt, commonly referred to as “FUD” in the crypto community, CZ framed the SEC lawsuit as an attack not merely on Binance but the wider crypto market. As the investigation continues, the crypto community keenly observes how these allegations and Binance’s vehement denial play out.