"This CZ doesn't have enough money to take other people's money."
Changpeng Zhao (CZ), the Chief Executive Officer (CEO) of the giant cryptocurrency exchange company Binance reportedly secretly had access to $400 million worth of funds believed to belong to Binance US users.
The following issues could have a negative impact on Binance if proven true following the United States' (US) Securities and Exchange Commission (SEC) already tightening regulations on consumer digital asset custodian services.
Back to the explanation that said Binance executives had secret access to Binance US bank accounts, the company was found to have transferred the funds to a trading firm managed by CZ himself.
Apart from bank accounts, Binance also gains various accesses such as banking records and company messages.
For the record, the transfer of funds amounting to $400 million through the Silvergate Bank account to a trading company called Merit Peak Ltd managed by CZ has been done quietly since the end of 2022.
Even so, it is still not certain whether the funds belong to Binance US customers or not in addition to Binance user deposits kept at Silvergate Bank.
In the meantime, companies offering crypto services will find it more difficult to conduct their operations after the SEC implements various rules that could further tighten regulatory requirements including guidelines.
