A U.S. judge has denied the SEC’s request to review Binance’s U.S. records
A U.S. judge rejected the SEC’s request to investigate Binance U.S. on September 18. The cryptocurrency trading platform maintained its position, labeling the proposal from the regulatory body as “overboard.”
There was some good news for Binance U.S. today. Since the U.S. Securities and Exchanges Commission (SEC) filed a lawsuit against it, the cryptocurrency exchange has been in the public eye. The company has lost C-suite employees while also seeing a drop in trade volume.
Earlier today (18 September), despite all the turmoil, the cryptocurrency exchange maintained its position against the SEC. The commission has already requested an investigation into Binance US. Claims that Ceffu, a custodial platform, was really affiliated with Binance formed the basis of the SEC’s action.
In addition, the oversight agency stated that the technique was utilized to illegally transfer money from American clients. As a result, the company has broken the agreement it had with the commission. Documents and discussions between the company and its wallet custody service providers are of special interest to the commission. The document said:
“However, even this little piece of evidence shows that BAM still cannot credibly explain the custody arrangements for its crypto asset wallets. As for the custodying of Customer Assets, BAM has repeatedly given the SEC contradictory information about the involvement of Defendant Binance Holdings Limited (“BHL” or “Binance”) and a Binance-related business named “Ceffu.”
The cryptocurrency exchange has protested recent events by claiming the commission’s proposal is “overboard” and inconvenient. The SEC had requested an inspection, but it was denied by U.S. District Judge Zia Faruqui in Washington, DC.
The court has also requested further evidence from the cryptocurrency exchange. In addition, Judge Faruqui doubted the cryptocurrency exchange’s ability to safeguard its funds.