Binance.US is under scrutiny from the SEC’s answer to the inquiry, alleging, and a lack of cooperation in producing requested documents.
U.S. regulators at the SEC are concerned that cryptocurrency exchange Binance.US is not helping them with their probe. On September 14th, the parties involved stated their charges in a court document.
Only 220 papers have been supplied by Binance.US’s parent company, BAM, throughout the discovery process, according to a court filing by the SEC. In addition, a significant percentage of the paperwork filed as part of the Consent Order has been labeled as, “Photos that don’t make sense and papers that have no signatures or dates on them.”
BAM has been accused of not just having trouble producing documents, but also refusing to provide necessary witnesses for deposition. Instead, they’ve consented to take depositions from just four witnesses (hand-picked by BAM).
The SEC further claimed that when asked for relevant conversations, BAM provided general objections. And they have flat-out denied the existence of records that would be created and maintained in the normal course of doing business, and have refused to furnish any records that would be requested.
Some of the contested papers were eventually received by the SEC from unanticipated sources. The usage of Ceffu, wallet custody software developed by Binance Holdings Ltd., is another topic of importance brought up in the court document because of BAM’s involvement with the company. BAM’s contradictory claims on Ceffu’s and Binance’s involvement in wallet and client funds management raised red flags with the SEC.
When asked who provided the wallet custody software and services, BAM first said Ceffu, but subsequently said Binance. This led others to wonder whether Binance.US had broken a previous agreement meant to stop money from leaving the country.
Legal action against Binance [BNB] was begun by the SEC on June 5th, with 13 allegations being brought against the cryptocurrency exchange. Unregistered securities offerings, individual products like Simple Earn and BNB Vault, and the staking program were all subject to these fees.
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