TL;DR
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The SEC is alleging that Binance’s CEO and financial manager each received billions of dollars of customer funds through a range of personal holding companies.
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It’s alleged that $12B+ was sent through a web of companies that have nothing to do with Binance – and that the majority of these US customer funds now sit in offshore accounts.
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The SEC has requested the court to sign a temporary restraining order to freeze assets on Binance.US – Ooooft!!!
Full Story
We had these neighbors growing up – two boys, about 3 years apart in age.
One day the older of the two was trying to prove how tough he was.
In a display of strength, he told his younger brother ‘I’m going to close my eyes, hit me with all you got, I can take it.’
…couple moments later – BAM! – shovel to the face.
(He was ok, just really bruised up for a few weeks).
Why’re we telling you this? Well, the same thing just happened to Binance (metaphorically).
After the collapse of FTX late last year, Binance’s CEO Changpeng ‘CZ’ Zhao has been touting that:
‘Binance is solid, we’re not like FTX, our house is in order. Come at us with all you’ve got, we can take it!’
Well, yesterday the SEC came knocking at CZ’s door, shovel in hand.
The agency is alleging that:
CZ and Guangying ‘Helina’ Chen (Binance’s financial manager), received billions of dollars of customer funds through a range of personal holding companies.
The SEC’s forensic accountant, Sachin Verma, alleges that $12B was sent to CZ and $162M to Helina, through a web of companies that have nothing to do with Binance – and that the majority of these US customer funds now sit in offshore accounts.
Now, here’s where the shovel really meets the skin:
The SEC has requested the court to sign a temporary restraining order to freeze assets on Binance.US.
Ooooft!!!
We’ll let you know more as soon as we learn more.
