Binance, the largest crypto exchange by volume, is facing increased scrutiny over a secret channel it used to transfer funds. Over a few months, more than $400 million from Binance.US was shifted between accounts controlled by CEO Changpeng Zhao.
The cryptocurrency industry is often associated with secrecy and anonymity, and the movement of money by crypto firms is no exception.
While traditional financial institutions have to follow strict regulations and reporting requirements, the decentralized nature of cryptocurrencies and their lack of a central authority makes it easier for ក្រុមហ៊ុនគ្រីប to keep their financial dealings under wraps.
Crypto Institutions Engaging in Questionable Practices
One of the primary reasons why crypto firms engage in secretive money movements is to avoid regulation. Since cryptocurrencies are not recognized as legal tender in many countries and their regulatory frameworks are still being developed, companies often prefer to keep their financial dealings away from the prying eyes of authorities. This allows them to avoid compliance costs and restrictions, giving them more flexibility to operate in a rapidly evolving industry.
Another reason for the secrecy is to prevent competitors from gaining an advantage. The crypto industry is highly competitive, with many players vying for market share. Companies often use opaque financial practices to keep their strategies and positions hidden from rivals, preventing them from gaining a foothold or using the information to their advantage.
Furthermore, crypto companies also engage in secret money movements to avoid public scrutiny. Many cryptocurrency businesses operate in a legal grey area, and their activities can be controversial. They may be involved in activities that some consider unethical or illegal, such as money laundering or terrorist financing. By keeping their financial dealings private, these companies can skirt negative publicity and potential legal action.
Secretive Movements
Despite the benefits, secretive money movements by crypto firms also have significant downsides. They can undermine transparency and accountability, making it easier for regulators and other stakeholders to ម៉ូនីទ័រ and assess the risks associated with the industry. Moreover, they can increase the potential for fraud and other criminal activities, harming consumers and damaging the industry’s reputation.
នៅពេលបច្ចុប្បន្ន, កំពុងមានបញ្ហា crypto exchange, Binance is facing regulatory heat. It is alleged that Binance transferred $400 million from its Binance.US account to a company reportedly tied to CEO Changpeng Zhao.
Even the former chief executive officer at Binance.US was left in the dark about the concerned outflows. This has caused concern and scrutiny in the cryptocurrency community.
យោងតាមរបាយការណ៍របស់ Reuters នៅថ្ងៃទី 16 ខែកុម្ភៈ ការស៊ើបអង្កេតលើកំណត់ត្រាធនាគាររបស់ Binance និងសាររបស់ក្រុមហ៊ុន បង្ហាញថា that more than $400 million was sent in a series of transactions in 2021 from an account controlled by Binance.US to trading firm Merit Peak.
“Over the first three months of 2021, more than $400 million flowed from the Binance.US account at California-based Silvergate Bank to this trading firm, Merit Peak Ltd, according to records for the quarter, which were reviewed by Reuters.”
Silvergate, a massive crypto-friendly bank, has recently come ក្រោមការ regulatory eyes, given its តំណភ្ជាប់ to collapsed crypto exchange FTX.
This uncertainty and distrust have taken a toll on its stock price, which is currently sitting at long-term lows under $20 per share.
George Soros’ fund even bought put options (ខ្លី) on 100,000 shares of Silvergate, worth $1.74 million as of Dec. 31, according to a ឯកសារ 13F.
Source: https://beincrypto.com/binance-secret-access-silvergate-bank-account-us-partner-400m-2021/