SEC Expresses Frustration with Binance.US’s Lack of Cooperation
The US Securities and Exchange Commission (SEC) has expressed its frustration with Binance.US for failing to address concerns about the status of customer funds. Despite attempts to cooperate, the agency claims that Binance has not provided evidence that customer assets are held in the US or that its business is separate from the international entity.
SEC Petitions Court on Issues Binance.US Suggests Are Baseless
The SEC alleges that Binance.US submitted 220 pages of documents without proper authority, lacking signatures and dates. Additionally, the company reportedly denied access to key staff members, including CEO Changpeng Zhao. The agency also claims that Binance.US deferred the request to understand the custody of customer assets to an offshore custodian called Ceffu.
Subscribe to our Social Media for Exclusive Crypto News and Insights 24/7!
The SEC is asking the court to order Binance to produce responsive documents and deny its opposition to the original SEC consent order. It is also seeking an extended discovery period if its latest court filing is approved.
The SEC originally filed an order against Binance.US on June 17, accusing the platform of mismanaging customer funds and moving large amounts offshore.
Binance.US Claims Departures Ensure Its Survival
Binance entities have experienced several key departures in recent months, including US CEO Brian Shroder and Chief Strategy Officer Patrick Hillman. The exchange claims that these departures, along with layoffs, will secure its survival as a crypto-only exchange.
Last week, two Russian executives also announced their departures from Binance.US.
Hot Take: Binance.US Faces Challenges Amidst Regulatory Scrutiny
Binance.US is facing challenges as it deals with regulatory scrutiny from the SEC. The agency has raised concerns about the status of customer funds and the separation of Binance.US from its international entity. The SEC has petitioned the court for further action, including the production of responsive documents.
Meanwhile, Binance.US has experienced significant departures among its key figures, which it claims will ensure its survival as a crypto-only exchange. It remains to be seen how these challenges will impact Binance.US’s future in the cryptocurrency market.
