Alleged involvement of Chinese investors with political connections in establishment of Texas mining hub
A recent report by The New York Times has provided insight into how Chinese investors, with the help of Binance, acquired a crypto mining facility in Texas.
According to the report, a 23-year-old Chinese national and NYU student named Jerry Yu appears to be the majority owner of BitRush, a Texas-based crypto mining facility. The facility was backed by $6 million in Tether (USDT) from undisclosed Chinese investors.
One of the lawsuits filed against BitRush by Crypton Mining Solutions revealed concerns about how the funds were transferred from China to the US. The investors, who were described as influential individuals in highly political and influential business positions, questioned the process.
The lawsuits uncovered a public money trail that ended at Binance. The report states that Binance facilitated transactions with USDT through its offshore branch, even when it was not following American banking rules.
It is still unclear who the source of the funds is, as only Binance has that information. Gavin Clarkson, a lawyer for BitRush, stated that the company itself did not send or receive any money through Binance. He also disputed the claims of non-payment and assured that they complied with all relevant laws and regulations.
A spokesperson for Binance stated that the transactions were made by foreign nationals who were not US residents, without disclosing their identities. Legal documents shared by Crypton revealed that BitRush planned to purchase the Texas site with $6.33 million in USDT. The documents also showed that, apart from Jerry Yu, the largest shareholder of BitRush was an undisclosed investor from IMO Ventures, a China-focused venture capital firm.
