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<p class="is-style-lead">The SEC alleges that Binance CEO Changpeng Zhao and financial manager Guangying Chen channeled billions from customers through a holding company, igniting new concerns over the crypto exchange&#8217;s business practices.</p>



<p>In a new <a href="https://storage.courtlistener.com/recap/gov.uscourts.dcd.256060/gov.uscourts.dcd.256060.21.0_2.pdf" data-type="URL" data-id="https://storage.courtlistener.com/recap/gov.uscourts.dcd.256060/gov.uscourts.dcd.256060.21.0_2.pdf" target="_blank" rel="noopener">court filing</a>, the Securities and Exchange Commission (SEC) claims that Changpeng &#8216;CZ&#8217; Zhao, Binance CEO, and Guangying &#8216;Helina&#8217; Chen, the company&#8217;s financial manager, funneled vast sums of customer money via their holding entity.</p>



<p>\As per the SEC, these funds were transferred to organizations under Zhao&#8217;s control through an intermediate holding firm called Key Vision Development Limited.</p>



<p>Sachin Verma, an SEC-employed accountant, has provided testimonial evidence for these allegations, which the regulator plans to use in its bid for a court-issued temporary restraining order to freeze Binance.US assets.</p>



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<p>The SEC, citing Verma’s forensic examination of Binance and Zhao&#8217;s corporate network&#8217;s bank statements, alleges that $12 billion was directed to Zhao and $162 million to a Singapore-based company controlled by Chen. Most of these funds, the SEC notes, are currently held in &#8220;offshore&#8221; accounts.</p>



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<p>Despite Binance&#8217;s public denial of co-mingling company funds with customer deposits, the SEC&#8217;s investigation since 2020 suggests otherwise, accusing Binance of holding its US affiliate&#8217;s assets until December 2022.</p>



<p>The court hearing regarding the restraining order is scheduled for June 13.</p>



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SEC accuses Binance CEO of diverting billions in customer funds

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