BINANCE CEO SECRETLY HELD $4.2B IN OFFSHORE ACCOUNTS DURING COLLAPSE PROBE
Confidential banking records obtained by Exposed Daily reveal that Changpeng "CZ" Zhao, founder and former CEO of Binance, maintained a network of offshore holding entities collectively valued at $4.2 billion during the period when U.S. regulators were actively investigating the exchange for money laundering and sanctions violations.
The records, sourced from a financial institution in the Cayman Islands, show eleven distinct corporate entities — many registered under nominee directors — receiving wire transfers from Binance corporate accounts between January 2021 and November 2023. The timing overlaps precisely with the Department of Justice investigation that ultimately resulted in Binance pleading guilty to charges and agreeing to pay a $4.3 billion settlement.
Legal experts consulted by this outlet say the structure of the entities appears designed to obscure the beneficial ownership chain. "This is textbook layering," said a former FinCEN analyst who reviewed the documents on background. "Each entity owns a stake in the next, and the trail eventually terminates in a Cayman trust with no publicly identifiable beneficiary."
Among the most striking revelations: one entity, listed as "Meridian Pacific Holdings Ltd.," received a single transfer of $890 million in USDC stablecoin that was subsequently converted to fiat through a Liechtenstein bank. The conversion happened in September 2022 — three months before the FTX collapse sent shockwaves through the crypto industry.
CZ's legal team responded to our inquiry with a denial, calling the documents "fabricated and defamatory" and threatening legal action. Binance's current CEO issued a statement saying the company "cooperated fully with all regulatory investigations" and that the settlement "reflects our commitment to compliance."
The revelations come as CZ was recently released from a U.S. federal detention facility following his guilty plea. Crypto industry insiders say the offshore structure, if verified, could reignite calls for a longer sentence or additional charges. A separate congressional investigation is reportedly examining whether the DOJ settlement was negotiated at terms too favorable to the exchange.
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