BINANCE.US Mysteriously Transferred $400 Million From Silvergate Bank To CZ’s Offshore Firm

Reuters reported that between the late 2020 and the first 3 months of 2021. Binance.us used its own bank account to transferred $400 million from Silvergate’s bank account to CZ’s offshore firm called Merit Peak.

Merit Peak is a company that acts as a market maker or liquidity provider for Binance.US. It’s owns and runs by Changpeng Zhao, also known as CZ, the founder of Binance, the world’s largest cryptocurrency exchanges. Merit Peak is registered in the British Virgin Islands, an offshore tax haven territory. There are no reports of what Binance’s management will do with such transactions.

Binance.US is currently under investigation of the US Securities and Exchange Commission over transparency of the company. SEC is investigating Merit Peak and Sigma Chain AG, another Binance’s market maker.