The SEC Criticizes Binance for Alleged Non-Cooperation
In an ongoing battle between the U.S. Securities and Exchange Commission (SEC) and Binance, the regulatory agency has strongly condemned the cryptocurrency exchange for its lack of transparency during an investigation. The SEC’s recent court filing criticized Binance US’s holding company, BAM, for providing only 220 documents during the discovery phase, many of which were unintelligible screenshots without dates or signatures.
SEC Tightens Grip on Binance
A major point of contention revolves around Binance Holdings Ltd.’s use of Ceffu, a wallet custody software service. The SEC argues that BAM’s use of Ceffu may violate a previous agreement that stated assets should remain solely in BAM’s custody and complete control within the United States.
The SEC also highlighted discrepancies in BAM’s statements about Ceffu. Initially, BAM claimed that Ceffu’s discovery was unrelated to the custody and control of customer assets, but later acknowledged that Ceffu played a role in creating new crypto asset cold wallets and keys.
In response to the SEC’s concerns, Binance.US dismissed them as exaggerated and referred to the demand for more documentation as a futile fishing expedition. The exchange stated that creating wallets through the Ceffu software does not grant their international branch access or custody over customer funds.
Additionally, the SEC accused BAM of refusing to provide essential witnesses for deposition and objected to requests for relevant communications. These allegations come at a challenging time for Binance US, as several high-profile executives have recently resigned from the company.
Renowned Analyst Weighs In
Analyst Adam Cochran commented on the situation, suggesting that the SEC’s focus on Ceffu might validate earlier speculation. He expressed concern about the auditor’s worries and questioned Binance US’s ability to maintain accurate books, particularly considering the messiness of their international operations.
As of now, the price of BNB stands at $212.5, just above a crucial support level.
Hot Take: SEC Accuses Binance of Lack of Transparency in Ongoing Battle
In an ongoing clash between the U.S. Securities and Exchange Commission (SEC) and cryptocurrency exchange Binance, the SEC has criticized Binance for its alleged non-cooperation and lack of transparency. The SEC emphasized that Binance US’s holding company, BAM, provided only 220 documents during the discovery phase, many of which were unintelligible screenshots without dates or signatures. Furthermore, the SEC raised concerns about Binance’s use of Ceffu, a wallet custody software service, suggesting that it may violate previous agreements. These allegations come at a challenging time for Binance US as high-profile executives continue to resign from the company. Analysts believe that the SEC’s focus on Ceffu validates earlier speculation and raises questions about Binance’s ability to maintain accurate books.
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