Binance was working with a US-based bank, according to the latest report by Reuters. However, recently the global exchange platform has shifted $400 million in funds from its US custodial account to a foreign financial enterprise. According to the same article, this enterprise is under the ownership of Binance CEO CZ.
Reuters has reported that these transfers have been taking place since 2020 in installments. The article noted that funds moved from the US branch of Binance to Silvergate Bank and then moved on to Merit Peak Limited. The publication house has also published the banking records and official correspondence among company officials.
The journalist was not able to ascertain the nature of the funds that were moved by Binance. They have tried to contact Binance to get a comment on the matter. However, thus far, the exchange has not issued any public statement on the subject.
On the other hand, the regulators in the USA have expressed grave concerns about the revelation claiming that they have been unaware of these transactions. Binance spokesperson Kimberly has told the media that this information was outdated and an old matter. Reuters also reached out to Prime Trust, a firm that has been listed as a holding company working for Binance as a custodial service.
Paxos is Parting Ways with Binance
Paxos has decided to sever ties with Binance by announcing that it will no longer issue any more BUSD tokens. The firm has received orders to halt the minting of BUSD tokens from the Department of Financial Services in New York. It is worth mentioning that Paxos is currently under investigation by the same regulator.
Meanwhile, the firm has also released a recent statement claiming that it is hopeful that the recent regulatory action does not impact its native currencies, Paxos Dollar and Pax Gold. Meanwhile, Wall Street Journal has informed in a new publication that SEC is currently investigating BUSD by declaring it as an unregistered security.