Binance US May Suffer US Congressional Investigation For Secret Trade Of $400 Million

Key Points:

• The US Congress may investigate Binance US.
• The action comes after media outlet Reuters reported its relationship with commercial company Merit Peak.
• If the proposal passes in Congress, Binance US could soon face broader scrutiny.

The US Congress should hold an investigation into Binance US for its links to Merit Peak, according to a statement from a senator cited by Reuters yesterday, according to CryptoSlate.

Senator Roger Marshall has proposed opening an investigation into Binance US’s relationship with the merchant company Merit Peak, which Binance CEO Changpeng Zhao manages.

“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.”

Senator Roger Marshall said.

The action comes after media outlet Reuters reported that Binance.US had sent $400 million from accounts at Silvergate Bank to merchant Merit Peak in 2021.

As was updated in an earlier article by Coincu News, according to Reuters, the world’s largest cryptocurrency exchange Binance secretly transferred more than 400 million USD to a company managed by CEO Changpeng Zhao (CZ). They also assert that Binance’s management team has access to Binance US’s bank accounts, despite multiple claims in the past that the two organizations are independent of each other.

Merit Peak has appointed Binance CEO Changpeng Zhao as its manager. Binance and Binance US have declared separate operations since 2019. Therefore, the above transactions imply that CZ has a financial connection that may not be suitable for Binance in the US.

The current CEO of Binance in the US claimed to be unaware of the incident and expressed concern. In a statement, a representative of one company denied the transfer information but declined to elaborate on the transaction.

Binance’s global arm has dealt with numerous regulatory intrusions and expects to pay fines to the US regulators, according to a Feb. 15 report from the Wall Street Journal. However, Binance.US has rarely been the target of such scrutiny apart from an earlier and ongoing SEC investigation into Merit Peak.

Binance.US could soon face public scrutiny, Senator, if today’s recommendation from Marshall is taken up in Congress and becomes more than a personal statement.

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