SEC Accuses Binance.US of Non-Cooperation in Investigation

By: Isha Das

The U.S. Securities and Exchange Commission (SEC) has raised accusations against Binance.US for non-compliant behavior, according to a recent court filing. The SEC pointed out that the business operations of Binance.US under the umbrella of holding company BAM Holdings, were not fully cooperating with the ongoing investigation. The commission stated that BAM has produced only 220 documents, many of which they describe as 'unintelligible screenshots and documents without dates or signatures.'

The regulatory body further claimed that BAM failed to present crucial witnesses for deposition, responding to the requests for relevant communications with blanket objections. Binance.US has reportedly been uncooperative, refusing to produce certain documents kept in the ordinary course of its business. The SEC also raised concerns about Binance.US's usage of Ceffu, a wallet custody software provided by Binance Holdings Ltd., questioning its transparency and reliability in managing customer funds.

The SEC's strong discontent with the crypto exchange's activities and the company's lack of responsiveness led to the regulatory body seeking a court order to make Binance.US comply and produce the requested documents. The SEC also requests an extension of the discovery period by 14 days, pending their latest court file's approval. Amid this legal tension, significant executive departures were reported at Binance.US, including CEO Brian Shroder, with the company confirming such moves as necessary for its continued operation.

In light of these accusations, the SEC's earnestness to uphold regulatory compliance in the crypto sector is made evident. The stern action being taken against reputed firms like Binance.US sends a clear message to other market players, demonstrating the importance of transparency and regulatory adherence in the operations of cryptocurrency exchanges.