The US Congress should look into Binance US for its ties to Merit Peak. Senator Roger Marshall has suggested starting an investigation into Binance US's interactions with the merchant firm Merit Peak, which Changpeng Zhao, the CEO of Binance, is in charge of running. Senator Roger Marshall stated:
“Something fishy is going on here that doesn’t pass the smell test…Congress needs answers, and Binance.US and Silvergate are obligated to give them to us.”
Binance.US had transferred $400 million from accounts at Silvergate Bank to retailer Merit Peak in 2021, the company took action.
Exclusive: Crypto giant Binance moved $400 million from U.S. partner to firm managed by CEO Zhao https://t.co/0lk6vkL41X pic.twitter.com/VZQaOsCufS
— Reuters (@Reuters) February 17, 2023
The largest cryptocurrency exchange in the world, Binance, covertly transferred more than $400 million USD to a business run by CEO Changpeng Zhao. Additionally, they say that Binance US's bank accounts are accessible to the executive team of Binance, despite previous assertions to the contrary.
Changpeng Zhao, CEO of Binance, has been named as Merit Peak's management. Since 2019, Binance and Binance US have announced distinct activities. The aforementioned transactions therefore suggest that CZ has a financial relationship that might not be appropriate for Binance in the US.
Although claiming not to be aware of the occurrence, the current CEO of Binance in the US voiced worry. A spokesperson for one company rejected the transfer rumors in a statement, although she would not go into further detail about the deal.
Binance's international subsidiary has faced with several regulatory intrusions and anticipates paying fines to US regulators. With the exception of a previous and current SEC inquiry into Merit Peak, Binance.US has not frequently been the subject of such scrutiny.
Senator, if the Marshall recommendation from today is followed up in Congress and goes beyond being a personal remark, Binance.US may soon be the subject of public inquiry.
