The SEC Demands Cooperation from Binance US in Ongoing Investigation
The U.S. Securities and Exchange Commission (SEC) has once again called upon Binance US, urging the crypto exchange to cooperate fully with its investigation. In court documents filed on Monday, the top regulator accused Binance US of making “half-hearted claims of irrelevance, prejudice, and burden.”
In June, the SEC filed a lawsuit against Binance, Binance US, and CEO Changpeng “CZ” Zhao, alleging violations of securities laws. As part of its investigation, the SEC requested expedited discovery to gain access to internal documents revealing the company’s operations and control over customer assets.
Binance US initially agreed to cooperate but later refused, claiming the SEC was making unreasonable demands. The regulator recently criticized the exchange for a “lack of transparency” during the investigation.
SEC Alleges Lack of Cooperation from Binance US
As a court hearing approaches, the SEC has accused Binance US of failing to cooperate and stonewalling on important information related to the custody of customer assets. The regulator highlighted the departure of top executives from the company as evidence of an urgent need for expedited discovery into these issues.
Furthermore, the SEC claimed that Binance US provided only limited information regarding Binance’s custody platform called Ceffu. The SEC believes that Ceffu is used by Binance US for asset custody.
Binance has consistently maintained that Binance US operates independently from its parent company and serves American customers separately.
Hot Take: SEC’s Persistence Reflects Growing Scrutiny on Crypto Exchanges
The ongoing battle between Binance US and the SEC underscores the increasing regulatory scrutiny faced by cryptocurrency exchanges. With regulators striving for greater transparency and control over the industry, exchanges must be prepared to cooperate fully with investigations. Failure to do so may result in legal consequences and reputational damage.
As the court hearing approaches, Binance US will have to carefully consider its response and address the SEC’s concerns regarding custody of customer assets. This case serves as a reminder that regulatory compliance is crucial for the long-term success and legitimacy of crypto exchanges operating within the United States.
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