Key Points:

Binance CEO CZ has emphatically refuted the CoinDesk report, claiming that $12 billion was transferred to enterprises under his control.

The initial story was based on the SEC’s accusations.

He labeled the claim “simply false,” questioning if the disinformation came from the journalist or the source itself.

Binance CEO Changpeng Zhao (CZ) denied on Thursday that the crypto exchange routed up to $12 billion in customer funds to other firms owned by the CEO.

The statement came amid claims that CZ redirected client monies to Merit Peak. Meanwhile, US Senators Elizabeth Warren and Chris Van Hollen have asked the US Justice Department to look into the crypto exchange Binance after the SEC’s complaint.

According to the CoinDesk article, the proof for these charges comes from testimony given by Sachin Verma, an SEC accountant, which would be used as part of the regulator’s arguments to ask the court to approve a temporary restraining order freezing assets on Binance.US.

Verma’s forensic investigation of Binance and CZ’s bank accounts showed that $12 billion was paid to Zhao and $162 million to a Guangying Chen-controlled business in Singapore.

The documents stated Chen and CZ held a variety of firms with no evident relation to Binance under their names. According to the SEC, the bulk of the monies delivered to CZ and Chen are now in “offshore” accounts.

In response to the SEC case, the Binance CEO said that all customer monies are accounted for and were never transferred in an unlawful way.

“To the best of my knowledge, Binance.US had in total roughly $2 billion in user funds. All user funds are accounted for, and never left the Binance.US platform (unless users withdraw themselves of course), ever.”

CZ reiterated his customary attitude of “4” for news that causes fear and uncertainty, claiming that the SEC case is an assault on the whole crypto market, not just the exchange.

“But $12 billion? The platform (Binance US) never had that much… not even close,” CZ asserted.

According to the SEC complaint, Binance participated in the unregistered offer and sale of securities, as well as combining investor money with the company’s own cash. This was quickly followed by the SEC lawsuit against Coinbase.

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Harold

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