According to what was reported in a news report document In a court filing dated September 14, the United States Securities and Exchange Commission (SEC) accused Binance.US of failing to cooperate with ongoing investigations against the crypto exchange.
In the court filing, the SEC highlighted how Binance.US’ holding company, called BAM, produces. Only 220 documents during the investigation process. Most documents submitted as part of a consent order “consists of incomprehensible screenshots and documents with no dates or signatures”.
The SEC added that BAM refused to produce the necessary witnesses for deposition, instead unilaterally accepting only four depositions from witnesses it deemed appropriate:
“The Company responded to requests for material disclosure with general objections and refused to produce documents it had in the ordinary course of its business, claiming that such documents did not exist, subsequently causing the SEC to obtain such documents from other sources. ” .
The SEC also noted that Binance.US’s global entity Binance Holdings Ltd. He also expressed concerns about his use of Ceffu, a wallet storage software provided by . The SEC found that BAM, Ceffu, and Binance made inconsistent disclosures regarding its involvement in the management of user wallets and funds.
The SEC alleged that BAM first claimed that Ceffu was BAM’s wallet custodian software and services provider, but later claimed that Binance was BAM’s wallet custodian. Regulators raise concerns over crypto exchange Ceffu’s use violated a previous agreement aimed at preventing funds from being diverted abroad.
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SEC on June 5 filed a lawsuit 13 claims have been filed against Binance against the crypto exchange, including unregistered securities offerings, Simple Earn and BNB Vault products, and staking program. The SEC said Binance.com, Binance.US, and BAM Trading must register as clearinghouses, broker-dealers, and exchanges, respectively. The unregistered offering and sale of the Binance.US staking-as-a-service program required BAM Trading to also register as a broker-dealer.
The SEC’s latest accusations against Binance.US come amid the exchange’s internal crisis. Binance.US CEO Brian Shorder Joins long list of senior Binance executives leaving the company this yearThis was followed within days by the resignation of the exchange’s chief legal officer and chief risk officer.
The company has not yet responded to our requests for comment.
Translation by Walter Rizzo