SEC says Binance and US Affiliate Redirected Billions in Customer Assets to CZ

The SEC is making headlines again in regards to the latest events involving Binance. Check out the new reports below.

It has been alleged by the Securities and Exchange Commission that Binance and Binance.US redirected more than $12 billion in customer assets to entities owned by the founder and owner of Binance, Changpeng ‘CZ’ Zhao, from 2019 to 2021.

The fresh SEC allegations come as supporting evidence in a request by the agency to a federal judge to place a temporary freeze on assets, beyond customer redemptions, at Binance.US.

The SEC has requested a freeze on Binance and Zhao’s assets, but currently, they have only obtained a temporary restraining order on the assets of Binance.US.

Spokespeople for Binance and Binance.US did not immediately provide comment. In a lengthy statement in response to the SEC’s initial enforcement action, Binance said, “We intend to defend our platform vigorously.”

On Tuesday, a federal court document revealed that the agency had made an accusation based on an analysis of accounts held by Binance, Binance.US, and Zhao at Silvergate and Signature Banks.

The documents for the SEC were provided by the banks and an assessment of the accounts was presented to the U.S. District Court of the District of Columbia as a sworn statement by Sachin Verma, the assistant head accountant for the SEC’s Enforcement Division.

Coinbase is also addressed by the SEC.

Coinbase executives managed to seek shelter during crypto winter, according to the latest reports coming from Blockworks.

“Crypto lost a whopping $1.6 trillion off of its total market cap in 2022, but that didn’t stop Coinbase executives from raking in cash,” a new article begins.

According to an SEC filing – with the exception of chief financial officer Alesia Haas – Coinbase’s executives walked away with more money in their pockets in 2022 than the year before.