Binance CEO Changpeng Zhao's offshore trading company, Merit Peak, reportedly received about $11 billion of client assets through a Seychelles-based firm, according to a filing by the US Securities and Exchange Commission (SEC).

The SEC has sued Binance, Zhao, and the operator of its US affiliate exchange for allegedly operating a "web of deception," including commingling corporate funds with client assets.

The SEC also alleges that Binance transferred over $162 million offshore to a foreign account owned by Binance's back office manager and that $32 million was sent from Sigma Chain to the same manager. Binance and Chen have not commented on the allegations.