The SEC claims that Binance CEO Changpeng Zhao and financial manager Guangying Chen channeled billions of customers through a holding company, which set him on fire new Fears over Cryptocurrency exchange business practices.
in new Lawsuit, SEC claims Changpeng ‘CZ’ Zhao, CEO of Binance, and Guangying ‘Helina’ Chen, the company financial managerHuge sums of client money via their holding entity.
\ According to the SEC, these funds were transferred to the organizations under Zhao’s control through an intermediary holding company called Key Vision Development Limited.
Sachin Verma, an accountant working for the SEC, provided testimonial evidence for These allegations made by the regulator plans to use in view it for A temporary restraining order issued by the court freezing Binance.US assets.
The Securities and Exchange Commission, citing a forensic examination of Verma of Binance and Zhao network’s bank statements, claiming $12 billion was directed to Zhao and $162 million to a Singapore-based company controlled by Chen. Most of This money, as the Securities and Exchange Commission notes, is currently detained in “External” accounts.
Although Binance public denial of Combined company funds with customer deposits, the SEC investigation since 2020 suggests otherwise, accusing Binance of holding subsidiaries in the United States assets Until December 2022.
The date for the court hearing regarding the injunction has been set for June 13th.