A Financial Times report has it that crypto major Binance is hiding its links to China.
The report claims Binance covered up its ties to China despite claims it had removed its business from the country in late 2017.
China banned crypto exchanges in 2017.
According to the report, top executives, including CEO Changpeng Zhao, were among those who instructed employees to hide their presence in the country when China banned crypto exchanges in 2017.
The report added that the company used a Chinese bank to pay some employees’ salaries as well as an office that was in use until the end of 2019.
Responding to the report, a Binance spokesperson said the Financial Times was "dramatically mischaracterizing events." The spokesperson added that the report "is not an accurate picture of Binance’s operations."
Binance is already in murky regulatory waters as question marks have been raised by the U.S. Commodity Futures Trading Commission over the company’s business operations.
On Monday, it was revealed that the regulator is suing the exchange for unregistered trading activity in the U.S., among other allegations.
Due to the CFTC lawsuit, Binance has seen $2.2 billion of cryptocurrency flow out of the exchange over around 45 hours.