Crypto exchange Binance has recently come under scrutiny after Reuters reported that the company moved around $400 million in funds from Binance US’s Silvergate Bank account to a trading firm called Merit Peak. The transfers occurred between January and March 2021, and the SEC is currently investigating Merit Peak’s ties to Binance.
Binance itself does not have the licenses to operate in the U.S., and a spokesperson for the company did not immediately return a request for comment. Former Binance US CEO Catherine Coley reportedly asked about the funds and their transfers at the end of 2020, but has not held a public role at a crypto company since April 2021.
The news of the transfers has had a significant impact on the markets. Silvergate’s (SI) stock is down 17% on the day, while Bitcoin’s (BTC) price remains around the $25,000 mark, up on the day’s trading. It remains to be seen how the SEC’s investigation into Merit Peak will affect Binance and the crypto markets.