Bank records reveal that Guangying Chen, a senior executive at Binance, was the primary operator for several bank accounts linked to Binance.US, the purportedly independent U.S. affiliate of the cryptocurrency exchange. These accounts, including one holding funds from American customers, were authorized for operation by U.S. lender Silvergate Bank in 2019 and 2020, according to records from those years. Chen, who is closely associated with Binance CEO Changpeng Zhao, and her team had the ability to move funds within these accounts, as evidenced by company messages indicating that Binance.US employees had to request Chen’s team to process payments, even for basic operational expenses such as payroll.
These newly discovered bank records shed light on the extent of Binance’s control over Binance.US, contradicting both companies’ claims of operating independently. Despite assertions to the contrary, the records and messages indicate that Binance maintained management control over the financial aspects of its U.S. affiliate, specifically regarding its bank accounts at Silvergate Bank. The details provided highlight the undisclosed level of access granted to Binance.
Binance.US has previously denied that Binance had any involvement in operating its bank accounts. Krishna Juvvadi, the head of legal at Binance.US’s operator BAM Trading, stated in April that employees of BAM Trading had “exclusive control” since the inception of Binance.US in 2019.
However, a Binance.US spokesperson, Christian Hertenstein, said that since the company’s current chief executive, Brian Shroder, took over in late 2021, “no one other than Binance.US officials have had control or access to Binance.US accounts.” Hertenstein did not explain the discrepancy in the time periods given by him and Juvvadi.
