Binance CEO “CZ” refuted allegations that the cryptoc exchange diverted $12 billion of user funds to other companies controlled by the CEO.
According to reports, CZ diverted customer funds to a company called Merit Peak. In response to the US Securities and Exchange Commission’s (SEC) complaint, Senators Elizabeth Warren and Chris Van Hollen have asked the US Department of Justice to investigate cryptocurrency exchange Binance.
The SEC lawsuit alleges that they engaged in the unregistered offer and sale of securities in addition to blending investor funds with its own. Interestingly, the Coinbase SEC lawsuit followed this promptly.
The CEO of Binance Clarifies User Funds
In response to the SEC litigation, the CEO of Binance explained that all user funds are accounted for and have never been removed in an unauthorized manner.
“To the best of my knowledge, Binance.US had in total roughly $2 billion in user funds. All user funds are accounted for, and never left the Binance.US platform (unless users withdraw themselves of course), ever.”
CZ maintained that the SEC lawsuit is an assault on the entire cryptocurrency market, not just the exchange, reiterating his usual “4” rating, which signifies news that causes dread and uncertainty.
