The SEC Requests Investigation into Binance US
The U.S. Securities and Exchange Commission (SEC) has filed a legal document asking a D.C. court to allow an investigation into Binance US. The SEC claims that Binance.US has failed to provide the necessary documents for their ongoing legal case. In June, the SEC sued Binance US, its parent company Binance Holdings, and founder Changpeng “CZ” Zhao, accusing them of operating a securities exchange without the proper license.
Concerns about Binance.US
In their filing, the SEC expressed concerns about Binance.US’s use of wallet custody software called Ceffu, provided by Binance Holdings Ltd. The Commission noted that inconsistent statements had been made regarding Ceffu and Binance’s role in managing wallet and customer funds.
Resignations at Binance US
The SEC also mentioned the recent resignations at Binance US, including CEO Brian Shroder, head of legal Krishna Juvvadi, and chief risk officer Sidney Majalya. The SEC stated that these departures highlighted the urgent need for expedited discovery to investigate issues related to asset custody and control.
Dwindling Trading Activity on Binance.US
Trading activity on Binance.US has plummeted this month. On September 16, only $5 million was traded, a significant drop from the $230 million traded a year ago. This decline in volume raises further concerns about the platform’s operations.
Hot Take: Uncertainty Surrounding Binance US Continues to Grow
The SEC’s request for an investigation into Binance US adds to the growing uncertainty surrounding the cryptocurrency exchange. With ongoing legal battles, resignations of key personnel, and dwindling trading activity, Binance US is facing significant challenges. The SEC’s concerns regarding the company’s compliance with regulations and the management of customer funds raise questions about its long-term viability. As the investigation unfolds, it remains to be seen how Binance US will navigate these obstacles and restore confidence in its operations.
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