Earlier this month, Binance CEO Changpeng Zhao (CZ) posted an article on Binance.com accusing journalists of racist bias for calling his organization a Chinese company. His article came in response to a question made to Binance’s communications director on Twitter by journalist Jacob Silverman who asked him who Guangying Chen is? Apparently, this question made CZ very uncomfortable.
Binance has always been very opaque about its ownership structures and official jurisdiction, and its history remains a mystery. Journalists have been trying to figure out who Binance is and where it is for some time now, but a leaked official US government report once claimed that Binance tried to hide its ownership structure and primary jurisdiction in order to avoid careful scrutiny and effective regulation.
In fact, Binance reportedly enjoyed a grace period of over a year from KYC regulations as it registered its companies in Malta until October 2019 before the legislation was introduced. Binance also reportedly allowed up to $2.35 billion in illicit funds to pass through its exchange from 2017 to 2021.
A look at official Binance documents in Malta and the UK confirms that the the property system is hidden behind a network of different companies linked by a shareholding distributed among different owners. However, all roads lead to CZ. Earlier this year, Bloomberg first revealed that CZ owns up to 90% of Binance shares.
CZ claimed in his post that Guangying Chen is a Chinese national who was Bijie Tech’s legal representative of his startup in China as China has strict restrictions on foreign ownership of companies. CZ also claimed that Guangying currently has a European Union passport.
Official documents obtained from the Malta Companies Registry confirm CZ’s statement that Guangying Chen holds a Chinese national passport. She was previously based in Singapore and appears to have obtained his new foreign passport in 2021 or 2022. Protos could not confirm his country of origin.
Chen is also listed as a director of Binance Europe and Binance Marketing Services registered in Malta with Binance (Services) Holdings Limited, registered in Ireland, and CZ being the largest shareholder. CZ is also the main shareholder of Binance (Services) Holdings Limited. Foreign companies registered in Malta enjoy a generous tax refund if profits are paid out as dividends.
Some companies registered on Binance also appear to be owned by CZ, such as Binance Digital in the UK, while others such as Binance Ltd and Binance Markets Limited have had different majority shareholders. However, Binance holds its largest companies in secret jurisdictions. Binance Capital Management, according to Bloomberg CZ holds a majority stake inis registered in the British Virgin Islands, Binance Holdings is registered in the Cayman Islands and Binance Investments Company is registered in the Seychelles.
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Forbes lists CZ as a resident of Dubai, United Arab Emirates, which was recently graylisted by the Financial Action Task Force for its reputation as a money launderer and protector of financial criminals due to its lack of antitrust treaties. ‘extradition.
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