HomeNEWSBinance.U.S denies money laundering allegations by Reuters

Binance.U.S denies money laundering allegations by Reuters


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Binance.US has denied a fresh money laundering allegations by Reuters. According to a Twitter post today, the U.S organ of Binance emphasized that its practices are in accordance the regulations of the country.

The statement surfaced after Reuters reported that between January to March 2021, Binance.US transferred about $400 million to another firm owned by its CEO, Changpeng Zhao. The report alleged that funds move from Binance.US account with Silvergate Bank to Merit Park, another firm belonging to CZ.

Meanwhile, in the report, the news agency couldn’t establish the purpose of the funds. Also, Reuters failed to explain if the funds in question belong to customers of the cryptocurrency exchange. The allegations extended to the then-CEO of Binance.US, Catherine Coley. Reuters alleged that Coley didn’t give consent to the transfer before leaving in June 2021.

While responding to the allegations, the U.S organ of Binance stated that the cryptocurrency exchange doesn’t engage in any fraudulent practices. Binance.US disclosed that there are emerging efforts to “draw parallels” between it and firms with insolvency issues. The cryptocurrency exchange stated that at no point should there be a comparison of such organizations with it.

Furthermore, the cryptocurrency exchange explained how it employed former employees from the Department of Justice, the Federal Bureau of Investigation, the Secuirites and Exchange Commission among others to ensure that its practices are in line with the U.S regulations. According to the tweet, the cryptocurrency exchange emphasized that it has never traded or mismanaged users’ funds.

Lastly, the cryptocurrency exchange established that only its employees have access to its bank accounts. However, Binance.US admitted that at a time Merit Peak operated on its platform, but the firm stopped working on the cryptocurrency exchange around 2021.

Could there be a rift between Binance and Reuters?

Previously, Reuters has made different publications that painted Binance in a negative light. According to a Binbits report on June 7, 2022, Reuters alleged that Binance was involved in a $23 billion money laundering case. The report attracted the attention of the cryptocurrency exchange, thus, denying it’s involvement.

In another report, Reuters also alleged that the Russian branch of Binance disclosed users’ information to local regulators. The report birthed a response from the cryptocurrency exchange that denied the claims. Binance pressed that its business activities in the country isn’t dissimilar from what it has been doing in other countries.

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David Idowu
David Idowu
David Idowu is a crypto reporter and trader with wealthy years of experience. He believes that blockchain technology has numerous opportunities that are begging for proper utilization. Away from work, David is either reading about World Politics, History or Tech Innovations.

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