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CZ Denies That Holding Firms Received $12B Of Binance.US User Funds

Changpeng Zhao, CEO of Binance June 8 Resisted the SEC’s claims and denied that one of his holding firms received $12 billion in US client funds.

Regarding the estimated $12 billion transfer, Zhao said:

“This is completely false… To the best of my knowledge, Binance.US held approximately $2 billion in user funds.”

Zhao added that the value of user deposits to Binance.US can only fluctuate slightly due to crypto prices and user withdrawals. He stressed that “all user funds are accounted for, and never leave the Binance.US platform” until users make a withdrawal.

Zhao issued his statement in response to a CoinDesk article, which cited a court filing as its source. He said he was “not sure whether it was the journalist or the source” who ultimately provided the allegedly false information.

CoinDesk also obtained a statement from a Binance representative, who said that the funds referenced in the case are “strictly corporate funds and not user assets.”

However, it appears to be a misunderstanding, not an acceptance of the fund transfer. The spokesperson described the “accounts” in relevant SEC court filing, This appears to refer to Binance Holdings accounts which coincidentally were worth $12 billion from 2020 to 2022.

Court filing supports $12B estimate

Other parts of the SEC filing, however, appear to support the allegation. One section alleges that Merit Peak – one of Zhao’s holding companies – received $11 billion of user funds from 2019 to 2021 through Vision Development Ltd.

The $12 billion estimate comes from the fact that Merit Peak received an additional $1.2 billion from BAM Trading, another Binance.US-affiliated company.

Regardless, the SEC says Merit Peak brought in about $12 billion in funding, along with money from other sources, for a total of $22 billion.

SEC said:

“The SEC has been unable to determine whether a Zhao-controlled entity that was allegedly trading on Binance (sic) using Zhao’s personal funds was able to “pass through” accounts to Binance platform customers worth billions of dollars.” will serve as.”

cites the SEC’s court filing separate document From its own accountant, who provided similar numbers but did not identify the source of those funds, such as Binance.US customer funds.

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