Binance commingled funds at Silvergate: Reuters
Binance commingled customer and corporate funds in 2020 and 2021 in accounts held at Silvergate Bank, according to a new report by Reuters. The outlet alleges that Binance corporate funds were directed to an account where users were instructed to “deposit” funds in order to purchase BUSD. Binance insists these weren’t actually deposits, but were users purchasing BUSD. Binance operated several accounts at Silvergate Bank. One that was under the name of Binance Holdings, a Binance entity organized out of the Cayman Islands, was primarily used to hold corporate funds. Another account for Key Vision Development, which was controlled by Binance chief Changpeng Zhao (CZ), was used to accept deposits from non-US customers. The third account was for Merit Peak, another Cayman Islands-based firm that was also controlled by Zhao. This third account is the one where funds were reportedly commingled . These funds were reportedly used to purchase BUSD, the white-labeled Binan...