The back-and-forth battle of allegations between Binance.US and SEC continues.
The United States Securities and Exchange Commission (SEC) has accused crypto exchange Binance.US of non-compliance.
According to the US securities regulator's filing submitted on September 14th, Binance.US's holding company, known as BAM, has not been fully cooperative during the discovery process.
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The SEC claims that out of the documents BAM has submitted under a Consent Order, many are either undated, lack signatures, or are simply unintelligible screenshots.
It has responded to requests for relevant communications with blanket objections and has refused to produce documents kept in the ordinary course of its business, claiming those documents do not exist, only for the SEC to later receive such documents from other sources.
Moreover, BAM has been accused of not naming key witnesses for testimony, agreeing only to depose four individuals it considers relevant.
Adding to the string of concerns, the SEC noted inconsistent statements about its wallet custody software, Ceffu.
Initially, BAM indicated that Ceffu was responsible for wallet custody software and services. Later, it shifted this role to Binance Holdings, contradicting its earlier statements. The SEC raised concerns that this could violate prior agreements intended to prevent the diversion of funds overseas.
It's worth mentioning that the SEC initiated legal proceedings against Binance on June 5th, leveling 13 separate charges against the crypto exchange. The allegations ranged from unregistered securities offerings to non-compliance with US financial regulations. The SEC asserts that Binance.com, Binance.US, and BAM Trading must register as clearing agencies, broker-dealers, and exchanges.
The SEC's latest allegations add another layer of complexity to what appears to be a tumultuous period for Binance.US. The crypto exchange has seen a string of high-profile departures, including its CEO, Brian Shroder.
Binance.US faces increased scrutiny from the regulatory agencies, followed by major departures. The SEC's allegations could add significant weight to the ongoing case and have far-reaching implications for the crypto exchange.
