SEC Claims Binance Failed to Provide Sufficient Documentation
The US Securities and Exchange Commission (SEC) has accused Binance of not providing enough documentation despite previously agreeing to expedited discovery. Binance’s US affiliate, BAM, has submitted around 220 documents, but the SEC claims that many of these consist of unintelligible screenshots without essential dates or signatures.
Binance-SEC Courtroom Drama
The SEC initiated a legal action against Binance on June 5th, bringing forth 13 charges, including violations of US securities laws and failure to prevent unregistered operations in the country. In new court documents, the SEC alleges that Binance is not cooperating with the ongoing probe.
The SEC also accuses BAM of refusing to make essential witnesses available for deposition and only providing four depositions of independently selected witnesses. The financial regulator criticized Binance.US’s use of Ceffu, a custody service offered by Binance Holdings Ltd., stating it violated a previous agreement on asset transfers.
Staff Exits at Binance.US
In June, Binance sent a letter to its staff anticipating a prolonged legal battle with the SEC and requested downsizing at Binance.US. Several high-ranking executives have left the company this year, including CEO Brian Shorder.
Hot Take: SEC Accuses Binance of Noncompliance
The ongoing legal battle between the SEC and Binance continues as the SEC accuses the crypto exchange of failing to provide sufficient documentation and cooperate with the investigation. The SEC also raises concerns about Binance.US’s use of a custody service in violation of an agreement. Additionally, staff departures at Binance.US highlight internal challenges faced by the company. As the drama unfolds in court, it remains to be seen how this will impact Binance’s future operations and reputation in the crypto industry.
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