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SEC Alleges Binance Sent Nearly $20 Billion of Commingled Funds to Paxos Foreign Affiliate in 2021

According to a declaration by an Assistant Chief Accountant of the U.S. Securities and Exchange Commission (SEC), Binance allegedly sent nearly $20 billion of commingled funds to a foreign affiliate of stablecoin issuer Paxos in 2021.

The declaration also stated that Binance and its CEO controlled several accounts at defunct banks, which were used to carry out transactions involving Zhao-owned companies.

The funds were allegedly transferred from Binance-related accounts to a trading firm called Merit Peak Ltd, which is beneficially owned by Zhao, before being transferred to Paxos' foreign affiliate. Binance has not yet responded to requests for comment.

Binance SEC Paxos
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