The U.S. Securities and Exchange Commission (SEC) has expressed concerns about Binance’s questionable fund transfers, according to court records.
In publicly released court documents, the SEC reported that on June 6, Binance CEO Changpeng Zhao withdrew $250 million from Binance.US Subsidiary BAM Management and subsequently transferred this sum to BAM Trading, the entity behind Binance.US.
Moreover, the transaction encompassed a $183 million loan from BUSD issuer Paxos Trust Company to BAM Trading.
Nevertheless, Binance.US’s legal team countered this by asserting that BAM Management US Holdings had issued a $250 million convertible note to Zhao in December.
Zhao used BUSD to acquire the note, with $183 million sent to Paxos Trust Company to convert BUSD into USD, which was subsequently transferred to BAM Trading in January 2023.
Previously, the SEC had accused Binance.US of non-cooperation with the investigation and raised concerns about its utilization of custody services provided by Ceffu, allegedly violating previous agreements to prevent asset outflows overseas.
Binance.US responded by affirming that concerns regarding Ceffu were unfounded, and the SEC’s request for additional documents was viewed as an attempt to gather evidence.
They clarified that establishing a wallet through Ceffu did not grant the international division of the company custody or access to customer funds.
This recent development follows a court decision on September 18 to reveal previously sealed documents related to the Binance lawsuit.
As the legal dispute persists, both parties remain steadfast in their positions, creating uncertainty about the eventual outcome.
