The SEC Accuses Binance of Lack of Transparency in Investigation
The U.S. Securities and Exchange Commission (SEC) has accused Binance of a “lack of transparency” during its investigation into the crypto exchange. In a court filing dated September 14, the SEC alleged that Binance US’s holding company, BAM, has only produced 220 documents during the discovery process, including unintelligible screenshots and documents without dates or signatures.
The SEC filed a lawsuit against Binance on June 5, leveling 13 charges against the platform, including breaking U.S. securities laws, failing to restrict U.S. investors from accessing Binance.com, and operating as an unregistered exchange, broker, and clearing agency.
The SEC Turns Its Gaze on Ceffu
In the court filing published yesterday, the SEC raised concerns about customer assets falling under the control of Ceffu, a wallet custody software service owned by Binance Holdings Ltd. According to a previous agreement, the assets were supposed to be solely in BAM’s custody and complete control in the United States and not shared with other Binance entities.
However, the SEC argued that Ceffu appeared to have control of customer assets through their role in establishing wallets and keys shards related to BAM Customer Crypto Assets. The SEC also indicated that BAM refused to provide sufficient information to demonstrate that the assets are not at the mercy of Binance Holdings Limited and Binance CEO Changpeng Zhao.
Executives Depart Binance US
These accusations by the SEC against Binance US come amid a wave of executive departures from the exchange. Earlier this week, the Chief Risk Officer (CRO) and Head of Legal resigned from Binance US, joining a long list of top Binance executives leaving the firm this year.
Hot Take: Binance Faces SEC’s Allegations of Lack of Transparency
The U.S. Securities and Exchange Commission (SEC) has accused Binance, the popular cryptocurrency exchange, of a “lack of transparency” during its investigation into the platform. The SEC filed a lawsuit against Binance in June, accusing it of multiple violations, including breaking U.S. securities laws and operating as an unregistered exchange.
In a recent court filing, the SEC raised concerns about customer assets falling under the control of Ceffu, a wallet custody software service owned by Binance Holdings Ltd. The SEC argued that Ceffu appeared to have control over customer assets, contrary to previous agreements.
Furthermore, Binance US has faced accusations of providing insufficient information and refusing to produce requested documents during the discovery process. These allegations come at a time when several top executives have departed from Binance US.
As the legal battle between Binance and the SEC continues, the outcome will have significant implications for the future of the exchange and the broader cryptocurrency industry.
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