The SEC filing points to Binance’s operations in Malta with CZ stating that he will not have to appear in person.
According to the lawsuit filed by the US Securities and Exchange Commission (SEC), Binance Chairman Changpeng Zhao has been summoned to Malta. The US Securities and Exchange Commission accused the exchange of engaging in suspicious activities in Malta between 2018 and 2019.
Binance Chairman Zhao cleared the air, saying that he would not need to appear in person to process the summons. “I was told this was just part of the SEC compliant process. Nothing new. It was also said I wouldn’t have to appear in person. No FUD needed,” he said. books.
The Securities and Exchange Commission (SEC) filed the subpoena on Wednesday in the US District Court for the District of Columbia. However, this is just a procedure and nothing special.
Earlier this week, the US Securities and Exchange Commission sued Binance on 13 different charges that include misleading investors, acting as an unregistered broker/dealer, and much more. Binance arrived in Malta in March 2018 and in October of the same year, Malta passed a law allowing cryptocurrency companies to apply for licenses to operate there.
From October 2018 to October 2019, Binance operated in Malta. During this time, crypto companies that moved to Malta had a year to obtain permission and comply with the regulations. During that period, Binance and others were not required to seek permission or follow anti-money laundering laws.
A recent court filing by the SEC reveals Binance favors weaker regulations in Malta, which has been promoting itself as a blockchain-friendly destination. The upcoming trial is likely to shed light on Binance’s questionable activities in Malta, particularly with regard to US investors and institutions.
Binance Partnership with Signature Bank
A new filing by the Securities and Exchange Commission (SEC) on Wednesday, June 7, refers to a trail of funds that shows Binance has moved nearly $70 billion through its accounts at now-bankrupt Silvergate Bank and Signature Bank. This total amount transferred occurred from 2019 until earlier this year.
The SEC filing shows that Silvergate Bank has facilitated more than $50 billion for Binance and its affiliates. Similarly, the Signature Bank has facilitated more than $19 billion. Citing records of Binance’s bank statements, deposits, wire transfers, and canceled checks, the SEC filing shows that some funds were also transferred to foreign entities.
The deposit noted: “Sometimes the amounts credited and debited within one month amount to a transaction of more than $1 billion. For example, in July 2021, the Signature Bank Binance Holdings account showed an initial balance of $468 million, deposits of $1 billion, withdrawals of $1.3 billion, and a final balance of $179 million.”
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Bhushan is a financial technology enthusiast with a good knack for understanding financial markets. His interest in economics and finance has turned his attention towards the new emerging Blockchain technology and Cryptocurrency markets. He is persistent in the learning process and keeps himself motivated by sharing the knowledge gained. In his spare time he reads fantasy and thriller novels and occasionally explores his culinary skills.