TL;DR
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The SEC alleges that Binance’s CEO and finance manager each received billions of dollars in client funds through a series of personal holding companies.
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It is alleged that $12 billion+ was sent through a web of companies unrelated to Binance – and that the majority of these US client funds are now held in offshore accounts.
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The SEC has asked the court to sign a temporary restraining order to freeze assets on Binance.US – Ooooft!!!
Full story
We had these neighbors growing up – two boys, about 3 years apart in age.
One day the older of the two tried to prove how tough he was.
In a display of strength, he told his younger brother, “I’m going to close my eyes, hit me with everything you’ve got, I can handle it.”
…a few moments later – BAM! – kick to the face.
(He was ok, just really bruised for a few weeks).
Why are we telling you this? Well, the same thing just happened with Binance (metaphorically speaking).
Following the collapse of FTX late last year, Binance CEO Changpeng ‘CZ’ Zhao has touted that:
“Binance is solid, we are not like FTX, our house is in order. Come to us with everything you’ve got, we can handle it!’
Well yesterday the SEC knocked on CZ’s door, shovel in hand.
The agency claims that:
CZ and Guangying ‘Helina’ Chen (Financial Manager of Binance) received billions of dollars in money from clients through a series of personal holding companies.
SEC forensic accountant Sachin Verma claims that $12 billion was sent to CZ and $162 million to Helina, through a web of companies unrelated to Binance – and that the majority of these US client funds are now offshore accounts.
Now, here’s where the shovel Real meet the skin:
The SEC has asked the court to sign a temporary restraining order to freeze assets on Binance.US.
Oooof!!!
We’ll let you know as soon as we know more.