Binance denies Reuters’ report alleging the crypto exchange commingled customer fund and mismanaged revenue

Crypto exchange Binance has denied a Reuters report that claimed that Binance commingled customer’s funds with corporate funds at Silvergate Bank.

Binance calls the allegation a ‘conspiracy theory.’

The Reuters report alleged that Binance violated United States banking regulations that require client money to be kept separate.

Reuters also alleged that the exchange in 2020 and 2021 mixed its corporate revenue with customer funds and that the comingling occurred on a daily basis. The report added that the majority of comingling had occurred on accounts held at now-bankrupt Silvergate Bank, with the amount having reached billions of dollars.

The report alleged that money from users was sent into the Silvergate account of Key Vision Development, a Seychelles-based company that Changpeng Zhao, CEO of Binance, owned.

The report further alleged that another Silvergate-based account linked to the Binance CEO’s Cayman firm was used to convert money into the dollar-linked token Binance USD

However, the Reuters report also noted that it found “no evidence that Binance client monies were lost or taken.”


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