The SEC’s statement to Binance and Changpeng Zhao underscores that the largest cryptocurrency exchange is helping to circumvent U.S. sanctions. In addition, according to the regulator, a significant portion of client assets have been moved to the accounts of Zhao and affiliated organizations.<br
The U.S. regulator bases its charges on data provided by collapsed banks Silvergate and Signature. According to these transactions, Binance was funneling funds to Merit Peak. The regulator states that this company is “Changpeng Zhao’s own firm.”
“$12 billion of Merit Peak’s $22 billion in proprietary funds came from Binance and Binance.US between 2019 and 2021,” the SEC said in its lawsuit.
Recall that the SEC accused Binance and its founder of creating a “deceptive network,” inflating trading volume, diverting customer assets and trading in unregistered securities.