Image courtesy of Binance Twitter page
- Binance’s CEO is being accused of diverting a whopping $12 billion in user’s funds to a firm privately controlled by him.
- Changpeng Zhao, also known as CZ, has taken to Twitter to thoroughly debunk these claims.
The CEO of Binance Changpeng Zhao, popularly known as CZ, has been accused of diverting customer’s funds amidst the ongoing chaos between the SEC and the cryptocurrency market.
In a recently published news article, crypto media outlet Coindesk stated that the U.S. SEC claimed that the Binance CEO moved a staggering $12 billion to firms under his control. “Binance redirected $12 billion to firms controlled by CEO, Changpeng Zhao says.” The article title read.
The funds were said to have been transferred to CZ’s firm Merit Peak. The transactions were allegedly made using a company called Key Vision Development Limited.
Taking to Twitter, the CEO of the exchange has debunked the rumors. CZ went on to explain that the U.S. branch of the cryptocurrency exchange had an estimated $2 billion in user funds.
He noted that due to market fluctuations the estimated amount is subject to constant change. CZ also explains that the numbers are bound to reduce, as users are withdrawing their funds due to the recent development. However, users’ funds are still intact and have never been moved from the platform, CZ asserted.
“This is simply false. Not sure if it’s the journalist or the source. To the best of my knowledge, Binance.US had in total roughly $2 billion in user funds. This number in USD equivalents fluctuates a little as crypto prices change. And declining as users withdraw due to recent news. All user funds are accounted for, and never left the Binance.US platform (unless users withdraw themselves of course), ever.” CZ wrote in a recent tweet.
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
Binance U.S. updates the public on its position as the its battle with the SEC continues
The speculations come not long after the U.S. Securities and Exchange Commissions slammed Binance and Coinbase, another leading crypto exchange, with a lawsuit.
The SEC is accusing the exchange of partaking in the unregistered offer and sale of securities. In addition, the SEC claims that the exchange also mingled the company’s own funds with investors’ funds.
In a recent tweet, Binance U.S. explained that the SEC is using intimidating tactics to push forward an ideological campaign against the digital asset industry in America. Binance revealed that it will be suspending USD deposits and halting USD withdrawal challenges in. A bid to protect customers.
The SEC has taken to using extremely aggressive and intimidating tactics in its pursuit of an ideological campaign against the American digital asset industry. https://t.co/AZwoBOgsqS and our business partners have not been spared in the use of these tactics, which has created… pic.twitter.com/rlIe6swIoY
— Binance.US 🇺🇸 (@BinanceUS) June 9, 2023
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