SEC Accuses Binance.US of Non-Cooperation in Investigation, Raises Concerns Over Compliance
Summary:
The United States Securities and Exchange Commission (SEC) accuses Binance.US of non-cooperation in the ongoing investigation. The SEC notes that Binance.US's holding company, BAM, has produced few documents, many of which are incomplete. The company also refuses to produce essential witnesses and has made inconsistent statements about its involvement with a wallet custody software. The SEC raises concerns about potential violations of agreements and regulations. The accusations follow an internal crisis at Binance.US, with several top executives leaving the firm. Binance.US has yet to comment on the accusations.
The United States Securities and Exchange Commission (SEC) has filed a court document accusing Binance.US of lack of cooperation in the ongoing investigation into the crypto exchange. The court filing dated September 14 states that Binance.US's holding company, BAM, has only provided 220 documents during the discovery process. However, many of these documents have been deemed unintelligible or lacking important details such as dates or signatures. The SEC also expressed dissatisfaction with BAM's refusal to produce crucial witnesses for deposition and their selective agreement to only four witness depositions. Additionally, the SEC raised concerns about Binance.US's use of Ceffu, a wallet custody software provided by Binance Holdings Ltd. The regulator noted inconsistent statements made by BAM regarding Ceffu's and Binance's involvement in the wallet and customer funds management. The SEC has further raised concerns that the use of Ceffu by Binance.US may violate a prior agreement aimed at preventing fund diversion overseas. This development comes as Binance faces increased regulatory scrutiny, with the SEC having filed a lawsuit against the crypto exchange on June 5, bringing forward 13 charges which include unregistered securities offerings and their staking program. Binance.US has yet to respond to these recent accusations made by the SEC.
Published At
9/15/2023 8:17:16 AM
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