Binance, a popular cryptocurrency exchange, allegedly used two U.S. banks to transfer billions of dollars globally, according to the Securities and Exchange Commission (SEC). Binance’s founder, Changpeng Zhao, moved hundreds of millions and sometimes billions of dollars through two regional banks: Silvergate Bank and Signature Bank. Through these banks, Binance transferred funds to accounts associated with companies based in countries like Lithuania, Kazakhstan, and the Seychelles. The SEC also sued Binance for mishandling customer funds, misinforming regulators about its operations, and engaging in manipulative trading. Binance denied any wrongdoing and said that the transactions did not involve customer funds. Meanwhile, the SEC estimated that Binance owed over $13 million in unpaid taxes over the past four years. Anti-money laundering experts said that the banks should have been wary of the large, swift transfers of funds. Signature Bank, which allowed crypto investors to transfer funds in USD globally, had around $100 billion in assets when it was shut down by regulators. Silvergate Bank, which closed some of Binance’s accounts in 2021 and 2022, liquidated itself earlier in March after losing billions of dollars from its cryptocurrency customers.
