Binance withdraws potential investments in the United States, confirms CEO Zhao

Binance withdraws potential investments in the United States, confirms CEO Zhao

Binance withdraws potential investments in the United States, confirms CEO Zhao

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Binance has withdrawn some potential investments in the United States, its CEO Changpeng Zhao said on Friday, following a Bloomberg report that the major crypto exchange was considering ending relationships with U.S. trading partners.


“We have withdrawn some potential investments or bids on bankrupt companies in the United States at this time. Seek permission first,” Zhao wrote in a statement. Tweeterwithout further details.

The Bloomberg report, which quotes an unnamed person familiar with the matter, said Binance was considering ending business relationships with banks and service companies in the United States, amid heightened regulatory scrutiny of the company.

Binance is also reassessing venture capital investments in the US and will consider removing tokens from all US-based projects, including leading stablecoin USD Coin, according to the report.

News that Binance may be dropping its US partners comes a day after Reuters reported that global exchange Binance, which is not licensed to operate in the US, had secretly transferred more than $400 million (nearly $3,310 crores of rupees) from accounts held by its supposedly independent US partner. This money, according to company messages, was transferred to a trading company run by Binance CEO Zhao.

“Like all other blockchain companies, we are conducting careful cost-benefit analysis and will pivot our business as necessary to protect our global user base,” a Binance spokesperson said. The company did not immediately respond to questions about which US investments Binance had withdrawn from.

US regulators have stepped up scrutiny of crypto companies this year. The regulatory action comes after multiple meltdowns in the crypto sector last year saw a string of major industry players in the US and beyond collapse.

On Monday, New York’s top financial regulator ordered the company behind Binance’s stablecoin to stop issuing the token.

Earlier this month, Binance said it suspended all dollar bank transfers after US banking partner Signature Bank recalled exposure to crypto firms.

© Thomson Reuters 2023

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