Overview
• Binance reportedly transferred more than $400 million from its partner exchange in the United States to a private trading firm called Merit Peak Ltd.
• Changpeng Zhao, Binance CEO, is named as the manager of Merit Peak Ltd. in the company’s documents.
• Binance U.S. CEO Catherine Coley reportedly had no knowledge of these transactions and described them as “unexpected”.
Binance Transfers Millions to Private Trading Firm
According to bank records viewed by Reuters, Binance transferred more than $400 million from Binance U.S. account in Silvergate Bank based in California to a private trading firm called Merit Peak Ltd. These transactions took place in the first three months of 2021 and began in 2020. Interestingly, Binance CEO Changpeng Zhao is named as the manager in the company’s documents.
Funds Received from Prime Trust LLC
Bank records further revealed that in the first quarter of 2021, Binance U.S. received $650 million from a firm named Prime Trust LLC. As per exchange terms of use at the time, Prime Trust was a custodian firm that held a portion of funds deposited by crypto exchange customers; however it remains unclear whether Merit Peak received funds from customer deposits or not .
Binace US Executives Concerned About Outflow Of Funds
As per company messages seen by Reuters, executives of Binance U.S were concerned about outflow of funds following transfers to Merit Peak Ltd.. CEO Catherine Coley reportedly had no knowledge of these massive transactions and described them as „unexpected“. Subsequently, a portion of funds were sent to Seychelles-based Key Vision Development Limited with Changpeng Zhao being its director at that time according to corporate filing from 2021 .
Binace Responds To Report By Reuters
In response to report by Reuters on these transfers, Binance U.S clarified that only employees had access to its bank accounts and further stated that activity on Merit Peak had ceased completely since 2021 .