CZ transferred over $400 million from the Binance US account at Silvergate Bank to his affiliated company, Merit Peak – Reuters

The transfers reportedly took place from late 2020 to the first quarter of 2021. During that time, Binance US CEO Catherine Coley was unaware of the nature of the transfers and turned to Binance Finance head Susan Li for clarification. 

Li claimed that the transfer was for trading services provided by Merit Peak to Binance US, but provided no further details.

Merit Peak is known to be registered in the British Virgin Islands and managed by CZ, and is a fairly closed offshore jurisdiction.

According to Binance US representative Kimberly Sohward, the information is outdated and Merit Peak no longer provides services to Binance US. Only Binance US employees have access to the company's bank accounts.

This information comes from Reuters, and The Defiant reports that the US Department of Justice is investigating Binance's activities for potential money laundering violations.