The SEC’s Request for Deeper Investigation into Binance
The United States Securities and Exchange Commission (SEC) has filed a new document in support of its motion to conduct a thorough investigation into Binance Exchange and its affiliated subsidiaries. The SEC is determined to gather all the necessary evidence in the ongoing lawsuit and has cited the mass exodus from the platform as a potential obstacle to its depositions. As a result, the SEC is requesting an expedited inspection of the trading platform.
Exodus from Binance.US
Brian Schroder, CEO of Binance.US, recently left the company. However, CEO Changpeng ‘CZ’ Zhao has addressed concerns and assured that these exits will not disrupt the firm’s operations. Despite this, the SEC is now seeking certain information about customer deposits. BAM, the company behind Binance.US, has not yet given consent for the SEC to access its technological infrastructure and software.
Enforcement Action and Failure to Produce Documents
Binance has faced enforcement action from the SEC for various charges, including violating securities laws and operating as an unregistered exchange. This recent filing by the SEC highlights previous accusations against Binance for failing to produce requested documents. The regulator suspects that Binance and CZ are stonewalling the discovery process by refusing to provide information about custody, security, and the availability of US customer assets. The SEC aims to determine if CZ controls BAM customers’ assets.
Hot Take: Further Scrutiny of Binance
The SEC’s submission for an expedited inspection demonstrates its determination to thoroughly investigate Binance Exchange and its subsidiaries. The regulator is concerned about potential obstacles due to a mass exodus from the platform. Additionally, it accuses Binance of stonewalling the discovery process by withholding requested information. Binance’s failure to produce documents and the refusal to grant access to its technological infrastructure raise suspicions. The SEC’s motion signifies its commitment to obtaining all necessary evidence for the ongoing lawsuit.
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