In a court filing, the SEC said that during the discovery process, Binance.US had only supplied 220 documents, many of which were “unintelligible screenshots and documents without dates or signatures.”
In a court document filed on September 14th, the United States Securities and Exchange Commission (SEC) charged Binance.US with failing to cooperate in the continuing inquiry against the cryptocurrency exchange.
The holding company of Binance.US, BAM, has only provided 220 documents during the discovery process, according to the SEC’s court filing. The Consent Order states that many of the provided papers “consist of documents without dates or signatures and documents with incomprehensible screenshots.”
BAM has only agreed to four depositions of witnesses that it has independently considered suitable, according to the SEC, and has declined to provide other crucial witnesses for deposition.
It has consistently raised broad objections in response to demands for pertinent communications and has declined to provide records held as part of routine company operations, saying they don’t exist. However, the SEC eventually obtained these records from other sources.
Concerns were also expressed by the SEC over Binance. US usage of Ceffu, wallet custody software made available by Binance Holdings Ltd., on a worldwide scale The SEC stated that BAM’s claims on Ceffu and Binance’s participation in the wallet and client fund management were contradictory.
According to the SEC, BAM first identified Ceffu as its provider of wallet custody software and services before identifying Binance. According to the authorities, the use of Ceffu by the cryptocurrency exchange breaches an earlier agreement intended to stop money from being sent outside.
The Simple Earn and BNB Vault products, as well as Binance’s staking program, are among the 13 allegations the SEC made against the cryptocurrency exchange in a lawsuit it filed on June 5. According to the SEC, Binance.com, Binance.US, and BAM Trading all needed to be registered as exchanges, broker-dealers, and clearing agencies, respectively. BAM Trading has to sign up as a broker-dealer in order to participate in Binance.US’s staking-as-a-service program’s unregistered offer and sale.
The SEC’s most recent allegations against Binance.US come at a time when the exchange is experiencing a crisis of its own. The CEO of Binance.US, Brian Shorder, joined the lengthy line of senior Binance executives who have left the company this year. The chief legal officer and the chief risk officer of the exchange both left the company shortly after.
Binance. The US didn’t reply to demands for remarks right away.
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