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Chinese Investors Allegedly Back Texas Mining Hub with Binance’s Aid

Recent revelations from The New York Times have highlighted the involvement of Chinese investors, possibly linked to Binance, in the acquisition of a Texas-based mining facility.

A report reveals that Jerry Yu, a 23-year-old Chinese national and NYU student, is purportedly the primary owner of BitRush, a crypto mining facility in Texas. The facility allegedly received $6 million in Tether (USDT) from undisclosed Chinese investors, raising questions about the funds’ transfer from China to the U.S.

Lawsuits filed by Crypton Mining Solutions, citing non-payment for services, disclosed the involvement of investors described as “Chinese citizens holding influential business positions.” These legal actions shed light on concerns regarding the fund transfer process from China, ending up at Binance, which reportedly facilitated USDT transactions through its offshore branch at a time when the exchange’s operations were not fully compliant with U.S. banking regulations.

However, the source of the funds remains unclear, known only to Binance. BitRush’s lawyer, Gavin Clarkson, denied the firm’s involvement in sending or receiving money through Binance and refuted claims of non-payment, asserting compliance with relevant laws.

Binance’s spokesperson acknowledged the transactions involving “foreign nationals not residing in the U.S.,” refraining from disclosing their identities. Legal documents shared by Crypton revealed BitRush’s plan to acquire the Texas site using $6.33 million in USDT, with an undisclosed investor from IMO Ventures, a China-focused VC firm, identified as the second-largest shareholder after Yu.

The reported involvement of Chinese investors and Binance in the acquisition of the Texas mining hub raises questions about fund transfer protocols and regulatory compliance, adding complexity to the ongoing legal disputes.

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