SEC Files Motion to Investigate Binance US
The Securities and Exchange Commission (SEC) has filed a court motion seeking a probe into Binance US. The SEC argues that Binance has not fully complied with a consent order, withholding documents and information about customer crypto asset custody. According to the SEC, recent depositions have revealed that Binance likely withheld responsive materials without proper justification. The agency points out conflicting statements from Binance regarding the custody of customer assets and the role of a related firm called “Ceffu.” The SEC insists on complete discovery to ensure the safety of assets during litigation.
Binance Claims Compliance, SEC Disagrees
Binance claims that it has fulfilled its discovery obligations and that further requests are burdensome. However, the SEC argues that Binance’s argument lacks specificity and evidence. The regulator states that limited discovery has already uncovered crucial communications and materials that Binance failed to produce. The SEC’s motion seeks to compel Binance to provide documents on wallet custody practices, communications about asset control, materials from former employees, and other relevant information. The purpose is to determine who controls customer assets and ensure compliance with the consent order.
Hot Take: SEC Intensifies Scrutiny of Binance
The ongoing clash between the SEC and Binance US continues as the regulatory body seeks a court-ordered investigation into the cryptocurrency exchange. With allegations of withheld documents and conflicting statements, the SEC aims to shed light on the custody of customer assets. While Binance claims compliance, the SEC argues for further discovery to reveal crucial materials yet to be produced. As both sides present their cases, it remains to be seen how this legal battle will unfold and what impact it may have on the cryptocurrency industry as a whole.
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