Binance.US, the U.S. affiliate of crypto giant Binance, acknowledged that Merit Peak, which is reportedly to have secretly received more than $400 million fund from Binance.US,  operated on the http://Binance.US platform, but it stopped all activity on the platform in 2021.

The leadership team of Binance.US has responded to rumors and speculation about its operations and safety. The team, comprised of former government officials, asserts that the exchange is safe, abides by US laws and regulations, and only its employees have access to its bank accounts. They also state that the exchange does not trade or lend out customer funds, maintains 1:1 reserves, and undergoes regular audits and regulatory reporting. The exchange's market maker program is transparent and competitive, and a market making firm named Merit Peak stopped all activity on the platform in 2021.

“Binance.US has never — and will never — trade nor lend out customer funds,” the statement said.“Only Binance.US employees have access to Binance.US bank accounts. Period.”

Earlier today, Reuters reported  that Binance.US allowed Binance to have secret access to its bank account, enabling large sums of money to be transferred from it to a trading firm managed by Binance CEO Changpeng Zhao. Binance’s banking records and company messages showed over $400 million from Binance.US account at California-based Silvergate Bank was sent in a series of transactions to trading firm Merit Peak. Merit Peak document named Binance CEO Zhao as Manager. Documents showed the transfers to Merit Peak began in late 2020.