The SEC Presents Evidence of Binance U.S.’s Non-Compliance
The United States Securities and Exchange Commission (SEC) has provided evidence against Binance U.S. in an ongoing case, revealing that the exchange has failed to comply with a consent order previously agreed upon. The SEC has filed a motion to unseal classified documents from last month, urging Binance U.S. to take specific actions.
Binance U.S. Contests SEC’s Demands
Binance U.S. has contested the SEC’s demands in an emergency restraining order, stating that they are unnecessary. The regulatory agency has expressed concerns about BAM Management and BAM Trading (Binance U.S.) not cooperating with the separation of wallets, systems, and staff from Binance.
SEC Files Motion to Unseal Documents
On September 15, the SEC moved to unseal its previous motion to restrict access to documents in the Binance lawsuit. Both the SEC and the defendants have agreed to reveal several SEC filings from the previous month. The SEC submitted 31 exhibits to support its request and challenge Binance U.S.’s protective order.
The filing read, “BAM has produced only approximately 220 documents, many of which relate to reporting otherwise required under the Consent Order, and many that consist of unintelligible screenshots and documents without dates or signatures.”
The SEC is asking the court to reject BAM’s request for a protective injunction. The next hearing is scheduled for September 18.
Past Legal Troubles for Binance
In March 2023, the CFTC sued Binance for selling futures and options to US traders without proper registration. In June 2023, the SEC charged Binance and its founder, Changpeng Zhao, for operating unregistered exchanges, offering unregistered securities, and making false statements about trading controls on the Binance.US platform.
Hot Take: SEC Presents Evidence of Non-Compliance by Binance U.S.
The SEC has provided evidence against Binance U.S., showing that the exchange has failed to comply with a consent order. This development comes as Binance U.S. contests the SEC’s demands in an emergency restraining order, deeming them unnecessary. The SEC has also filed a motion to unseal classified documents from last month and urges specific actions from the exchange. The court hearing is set for September 18. These legal troubles add to Binance’s previous issues, including being sued by the CFTC for selling futures and options without proper registration and facing charges from the SEC for operating unregistered exchanges and offering unregistered securities.
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