Binance, the world’s largest cryptocurrency exchange, recently made headlines when it was revealed that the company had moved $400 million of its US affiliates’ funds via a secret access to the Silvergate Bank account. The news has been met with both praise and criticism, with some praising the move as a smart business decision and others criticizing it for its lack of transparency.
The move was made in order to ensure that Binance’s US affiliates had access to the funds they needed to operate and do business. The money was transferred from Binance’s US affiliate’s accounts to Silvergate Bank, where it was then held in a segregated account. Silvergate Bank is a California-based bank that specializes in banking services for cryptocurrency companies.
The news of the move has sparked debate among cryptocurrency enthusiasts, as many are concerned about the lack of transparency and potential for abuse. Binance has defended the move, stating that it was necessary in order to protect the funds of its US affiliates. The company also noted that the funds were held in a segregated account and that all transactions were conducted in compliance with US financial regulations.
Despite the controversy, the move has been praised by some as a smart business decision. By using a trusted third-party banking institution, Binance was able to ensure that its US affiliates had access to the funds they needed without having to expose their accounts to the public. This allowed them to continue to operate and do business without having to worry about the potential for fraud or theft.
Ultimately, the move by Binance is a testament to the company’s commitment to protecting its customers and their funds. While the lack of transparency may be a concern for some, the company has taken steps to ensure that the funds are kept secure and that all transactions are conducted in compliance with US regulations.