Binance, the world’s largest cryptocurrency exchange, has denied allegations of secretly moving funds from its US affiliate to a trading firm associated with its CEO, Changpeng Zhao.

According to a Reuters report, a Silvergate Bank account linked to Binance.US’s operating company BAM Trading transferred over $400 million to Merit Peak, a market maker managed by Zhao himself, between January and March 2021.

The report suggests that the transfers took place without the knowledge of Binance.US executives, but it was unable to confirm if customer funds were involved.

In response, Binance has issued a statement clarifying that it does not have access to bank accounts held by its independent US partner.

The exchange emphasized that only Binance.US employees have access to the company’s bank accounts. It also highlighted that while Merit Peak did operate on the Binance.US platform, it ceased all activities in 2021.

Binance further emphasized that it has a competitive and transparent Market Maker program that is listed on its website and assures customers that their funds are safe.

Binance’s leadership team includes former DOJ, SEC, FBI, and NYFed employees who are committed to operating a platform that abides by US laws and regulations.

Binance.US has never traded or lent out customer funds, maintains 1:1 reserves, and undergoes regular audits and regulatory reporting by government entities.

The exchange remains committed to providing a secure and compliant trading environment for its users.