Binance CEO Changpen Zhao (CZ) has reportedly addressed the recent disclosure of employee chat records by the US Securities and Exchange Commission (SEC) in an internal letter.

The release of these chat logs by two former employees has caused significant damage to Binance’s reputation. CZ reminds employees that investigators will be seeking access to their chat logs, according to information shared by Chinese reporter Colin Wu.

In the internal letter, CZ emphasizes the importance of staying focused on building products that people use, especially during challenging times.

He acknowledges the possibility of additional chat logs containing remarks from disgruntled employees or comments that were not carefully considered in the past.

However, CZ asserts that Binance has always maintained a high ethical standard and prioritized user protection.

Cryptocurrency expert Adam Cochran has conducted a detailed analysis of the chat logs released by the SEC, shedding light on Binance’s operations and compliance practices.

Sam Lim, the former head of compliance at Binance, expressed doubts about the company’s compliance procedures and its ability to meet regulatory requirements in the chat logs.

He also mentioned that Binance’s business priorities often took precedence over compliance training and procedures.

One particularly damning statement made by Lim was, “there is no f*king way we are clean.” As the highest-ranking compliance person at Binance during that time, this comment raises concerns that the company may have knowingly violated regulations.

Cochran also highlights a conversation where Lim discussed a setup that allowed entities to be onboarded through the US exchange but trade via .com, indicating potential non-compliance with proper procedures.

The SEC has filed detailed requests outlining various issues with funds, including the observation that many Binance.US withdrawals originated from Binance International.

Internal conversations with Cooley, a law firm, also revealed instances where Binance International staff converted USD into BUSD without a clear trail of documentation.