The statement came amid claims that CZ redirected client monies to Merit Peak. Meanwhile, US Senators Elizabeth Warren and Chris Van Hollen have asked the US Justice Department to look into the crypto exchange Binance after the SEC’s complaint.
According to the CoinDesk article, the proof for these charges comes from testimony given by Sachin Verma, an SEC accountant, which would be used as part of the regulator’s arguments to ask the court to approve a temporary restraining order freezing assets on Binance.US.
Verma’s forensic investigation of Binance and CZ’s bank accounts showed that $12 billion was paid to Zhao and $162 million to a Guangying Chen-controlled business in Singapore.
The documents stated Chen and CZ held a variety of firms with no evident relation to Binance under their names. According to the SEC, the bulk of the monies delivered to CZ and Chen are now in “offshore” accounts.