SEC accountant claims large amounts of money flowed into Binance-linked accounts.

An accountant from the US Securities and Exchange Commission has stated that Binance, CEO Changpeng Zhao, and related entities have moved “large amounts of money” from 2019 up to this year.

During that time, Binance and its entities held numerous accounts with now-failed Silvergate Bank and Signature Bank, according to a court filing released on Wednesday.

The accountant said, “The transactions in many of the Binance or Zhao-owned company accounts held at Silvergate Bank and Signature Bank show large amounts of money flowing in and out of the accounts. The large incoming credits are followed by outgoing debits within days, with the result that the accounts maintain a relatively much lower balance at the month’s beginning and end.”

For example, one account with Silvergate had a beginning balance of $7.6 million and an ending balance of $7.7 million, but in February 2022, $20 million was deposited, and $17 million total was wired to other Binance entities, according to the accountant.

It is unclear why the money was moved, but financial institutions in the US are required to file suspicious activity reports.

Binance did not immediately respond to a request for comment.

Binance’s showdown with the SEC

This comes just days after the SEC sued Binance and Zhao over their “blatant disregard of the federal securities laws.”

The regulator alleged that Binance and BAM Trading, doing business as Binance.US, under Zhao’s leadership, were unlawfully operating as an exchange, broker-dealer, and a clearing agency without registering.

The SEC also stated that Solana, Cardano, Polygon, among others, were labeled as securities in the complaint.

The agency filed an emergency motion on Tuesday night to freeze the assets of Binance.US.

“Because Defendants have repeatedly failed to provide sufficient assurances, the SEC now seeks the Court’s assistance in ensuring the safety and availability of investor assets and that Defendants do not dissipate assets that may become due should the SEC prevail in this action,” the SEC said in the motion.

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