Crypto giant Binance moved $400M from U.S. partner to firm managed by CEO Zhao
This seems like a non-story.<p>If the transfers came from Binance.US (BAM) and all client money is held by Prime, then it is very unlikely that the transfers were client money.<p>&gt;&quot;Where are those funds coming from?&quot; she wrote in one message.<p>&gt;In a response to Coley, seen by Reuters, the Binance executive, Susan Li, did not explain the transfers. Li wrote that Merit Peak was a &quot;vendor that facilitated trading&quot; on Binance.US and also provided loans and capital injections to the American exchange.<p>So Li DID explain the transfers?!  It&#x27;s not unusual for separate entities to market make, supply liquidity etc for exchanges, especially small, new exchanges like Binance.US in 2020&#x2F;2021.  And they get paid accordingly like any company rendering services.<p>This is a similar structure to how FTX and Alameda started off.  But there is nothing dodgy about that structure per see.  It is the same structure that Trad-Fi exchanges use.  The issue is when (a) the market maker starts betting and losing money and (b) customer funds are used to bail it out.  (a) is the problem and (b) is the criminal solution...<p>To be clear: I am not saying Binance is 110% above board, solvent, etc. Just that there is zero evidence otherwise here.