Cryptocurrency exchange Binance has reportedly transferred $400 million U.S. to a trading firm managed by Chief Executive Officer (CEO) Changpeng Zhao.
According to the Reuters News Agency, some $400 million U.S. flowed from the Binance.US account at California-based Silvergate Bank to trading firm Merit Peak that is run by Zhao.
Reuters has said that it hasn’t been able to determine the reason for the transfers or whether any of the money belonged to Binance customers.
Binance has reportedly not commented on the media report.
This latest revelation comes at a time when Binance has been hit with a record number of client withdrawals and redemptions following the $8 billion U.S. collapse last year of rival crypto exchange FTX.
Zhao has been vocal in defending Binance and claiming that the exchange remains solvent. He has also said repeatedly that he views the customer redemptions on Binance as “business as usual” and is not concerned.
Following turmoil in the crypto sector last year, prices for major digital assets such as Bitcoin (BTC) and Ethereum (ETH) have rallied this year. The price of Bitcoin is up nearly 50% year to date at close to $25,000 U.S.
