Binance, BinanceUS, Merit Peak, $400M users fund transaction & FUD: Explained
BinanceUS team & Binance CEO CZ confirmed that both the exchanges are independent & also BinanceUS never played trade games with customers’ funds.
Binance.com is a popular first-ranked crypto exchange and Binance.US is a fully independent subsidiary of Binance.com which provides services in the US. Many times, Binance exchange faced regulatory action & hurdles of investigations over relationships between both platforms.
On 16 Feb 2023, Reuters reported that Binance exchange transferred $400 million from BinanceUS’ Bank account to a trading platform Merit Peak, in Q1 2021.
BinanceUS exchange responded to this whole matter and confirmed that the exchange workforce includes many former US government officials who help to maintain the financial activities of the exchange under basic financial rules and always comply with the regulation system and also clearly stated that the exchange never traded with the use of customers’ funds.
The BinanceUS team also provided clarification that Merit Peak firm dragged all of its support from the BinanceUS exchange in 2021 and fund transaction was part of its procedure without involvement of Binance.com.
Binance.com doesn’t provide crypto services in the US directly but still has many investments & partnerships with multiple Banks & firms.
As per reports, Binance.com is very near to cutting down all its partnership with US-based companies because it is facing regulatory pressure from the Commodity Futures Trading Commission (CFTC), the Internal Revenue Service (IRS), the Department of Justice (DOJ), and the Securities and Exchange Commission (SEC).
On behalf of Bloomberg report, crypto news media Watcher.guru reported that Binance is considering delisting all the crypto assets, which are from the US.
Binance CEO Changpeng Zhao (CZ) responded to the whole matter and confirmed that all these are only fud & nothing.
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