SEC Expresses Concerns Over Binance.US’ Lack of Cooperation in Investigation and Possible Overseas Asset Transfers

SEC Expresses Concerns Over Binance.US' Lack of Cooperation in Investigation and Possible Overseas Asset Transfers


The SEC Accuses Binance. United States of Non-Compliance and Possible Breach of Consent Order

The Securities and Exchange Commission (SEC) has accused digital currency exchange Binance. United States (BAM) of failing to cooperate with its investigation and potentially violating a previous agreement to prevent the movement of assets overseas. According to the SEC, BAM has provided minimal information in connection with the probe, raising concerns about a breach of the consent order. The regulator stated that BAM has only produced around 220 documents, a lot of which are unintelligible screenshots without dates or signatures. In addition, BAM has refused to provide key witnesses for deposition and has declined to secure that United States assets are accessed solely by its United States arm.

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Insufficient Participation and Violation of Consent Order

The SEC states that Binance. United States is not fully cooperating with its investigation into the exchange’s activities. The SEC alleges that BAM has failed to provide sufficient information requested by the regulator, potentially breaching a consent order. BAM has only submitted approximately 220 documents, a lot of which pertain to reporting required under the Consent Order. Nonetheless, these documents often lack clarity and essential details such as dates or signatures. Furthermore, BAM has objected to requests for relevant communications and refused to produce routine business documents. The SEC likewise criticizes BAM for not providing key witnesses for deposition.

Possible Violation of Agreement on United States Assets Access

The SEC states that Binance. United States could be violating an agreement requiring United States assets to be exclusively accessed by its United States division. This raises concerns about probable non-compliance with regulatory requirements and further complicates the ongoing legal battle between Binance and the SEC. The SEC accuses Binance. United States of offering unregistered securities, leading to the lawsuit filed against the cryptocurrency exchange in June. As this legal drama unfolds, Binance is facing additional challenges with multiple high-level executive departures. Thirteen staff members have left the company since July, including the recent departures of the CEO, head of legal, and chief risk officer.

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Executive Exodus and Staff Reduction at Binance.US

Binance. United States is as of now experiencing whole lot of turmoil due to the legal battle with the SEC and a series of high-profile executive departures. Thirteen employees have left the company since July, including 3 departures in the last week and four over the past  week. The latest executives to leave are the head of legal, Krishna Juvvadi, and the chief risk officer, Sidney Majalya. These departures follow the exit of Binance. United States CEO Brian Shroder earlier this coming week. As a result to these challenges, Binance has reduced its workforce by approximately one-third, resulting in around 100 job cuts.

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Hot Take: Binance. United States Faces Mounting Legal and Leadership Challenges

The SEC’s accusations against Binance. United States for non-compliance with its investigation and probable violation of a consent order further escalate the legal battle between the cryptocurrency exchange and regulators. With limited participation from Binance. United States and ongoing executive departures, the future looks uncertain for the company. The reduction in staff size adds to the mounting challenges faced by Binance. United States. As regulatory scrutiny intensifies and leadership stability becomes a concern, Binance. United States must navigate these obstacles to restore confidence in its operations and address regulatory concerns effectively.

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Author – Contributor at | Website

Insa’s extensive background in the financial realm encompasses roles as a writer, trader, and personal finance coach. Her proficiency spans a wide spectrum, ranging from commodities and indices to forex and cryptocurrencies. Insa’s specialization lies in furnishing strategic investment advice tailored to the fintech investment niche.

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