SEC Requests Dismissal of Binance US Objections
The U.S. Securities and Exchange Commission (SEC) has filed a motion to dismiss objections raised by Binance US regarding the regulator’s recent legal action. According to the SEC, an audit of Binance US revealed difficulties in verifying the company’s full collateral backing. However, Binance US argues that the SEC is overstepping its jurisdiction.
Contention Points Between Binance US and the SEC
Binance US claims that the SEC’s demands are too broad and outside their authority. They argue that the SEC is requesting documents and information beyond their control, better suited for other parties involved in the case.
SEC Accuses Binance US of Shaky Asset Custody
The SEC criticizes Binance US’s asset management, calling it “shaky.” They are asking the court to disregard Binance US’s objections and allow an inspection into the company. The regulator believes that Binance US has not provided all necessary documents for ongoing legal procedures.
Concerns About Ceffu and Transfer of Funds
The SEC expresses concerns about Ceffu, a service previously known as Binance Custody. They suspect that Ceffu may be facilitating the transfer of U.S. customer funds out of the country, violating a prior agreement.
Binance US Under Scrutiny
The SEC accuses Binance US of providing inconsistent representations and stalling document production, raising doubts about the custody of customer assets. The regulator labels Changpeng “CZ” Zhao, founder of Binance Holdings, as someone who views himself outside any court’s jurisdiction.
Hot Take: Crypto Regulation in Focus
The tensions between the SEC and Binance US highlight the broader concerns surrounding cryptocurrency regulation. As the crypto industry continues to grow rapidly, the extent of oversight required is becoming a prominent topic. Compliance with the SEC’s demands is crucial for Binance US to avoid penalties.
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