US SEC leaks Binance's employee chat logs

The Securities and Exchange Commission (SEC) has released employee chat logs from Binance, the world’s largest cryptocurrency exchange. The chat logs allegedly show Binance employees discussing ways to evade regulatory scrutiny.

Binance CEO Changpeng Zhao (CZ) has condemned the SEC’s release of the chat logs, calling it “unethical” and “damaging to the crypto industry.” CZ has also demanded that the SEC explain why it released the chat logs.

In a letter to Binance employees, CZ said that the SEC’s disclosure of the chat logs has had a negative impact on the exchange’s reputation. He emphasized that investigators will be requesting access to more chat logs from employees.

SCOOP: Binance CEO CZ released an internal letter today to talk about the employee chat records disclosed by the SEC, saying that it has caused huge damage to the reputation; reminding employees that investigators will ask for your chat logs. And he cited this tweet first… pic.twitter.com/41g9KSIi93
— Wu Blockchain (@WuBlockchain) June 8, 2023

He underscored the importance of maintaining focus on building user-centric products during challenging times and asserted Binance’s commitment to high ethical standards and user protection.

Cryptocurrency expert Adam Cochran has analyzed the chat logs released by the SEC, shedding light on potential issues within Binance’s operations and compliance practices.

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Evidence from SEC case against Binance including internal chat logs, first between Sam Lin (former compliance lead at Binance) and Alivn (previously head of BD)

First is their convo about equity bonuses where Sam talks about risks of holding BNB pic.twitter.com/96IfwJEUOT
— Adam Cochran (adamscochran.eth) (@adamscochran) June 7, 2023

Former Binance head of compliance, Sam Lin, expressed doubts about the company’s compliance procedures and its ability to meet regulatory requirements in the chat logs.

Cochran’s breakdown highlights how Binance’s business priorities sometimes took precedence over compliance training and procedures.

Within the chat logs, Lin made a concerning statement indicating that Binance was not “clean” in terms of compliance. This remark coming from the highest-ranking compliance person raises questions about the company’s adherence to regulations.

Cochran also points out conversations where Lin suggests that Binance facilitated trades for high-volume traders without proper compliance procedures, indicating potential regulatory violations.

The SEC has filed detailed requests outlining concerns with funds, including the discovery that many Binance.US withdrawals originated from Binance International.

Internal conversations with Cooley, a legal counsel, revealed instances where Binance International staff converted USD into BUSD without clear tracking. These issues raise further compliance and transparency concerns for the exchange.

TagsBinance SEC

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