Binance Not Cooperating With U.S. Officials?

By Vince • September 15, 2023 2:21 pm • Comments

The Securities and Exchange Commission (SEC) is ramping up its investigation into the U.S. subsidiary of Binance.

A recent court filing from September 14, 2023, indicates that the SEC is not happy with Binance’s response to their ongoing probe. The federal agency claimed that Binance was not cooperating with their investigation.

Lawyers for the SEC allege that Binance and its various entities have barely produced any materials that the SEC has requested and much of this material is lacking critical identifying data.

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Ajay Kashyap presented some of the underlying details of the SEC’s accusation against Binance: “SEC said in a court filing that Binance US has produced only 220 documents during the discovery process many of which were “unintelligible screenshots and documents without dates or signatures.”

LWNC reports: “The SEC in its court filing noted that Binance US’s holding company called BAM has produced only 220 documents during the discovery process. Many of the submitted documents under the Consent Order “consist of unintelligible screenshots and documents without dates or signatures.”

Coin Telegraph provided more details:

The SEC also raised concerns over Binance.US’s use of Ceffu, wallet custody software provided by the global entity Binance Holdings Ltd. The SEC noted that BAM made inconsistent statements about Ceffu’s and Binance’s involvement in the wallet and customer funds management.

SEC said that BAM first claimed Ceffu was BAM’s wallet custody software and services provider but later stated that Binance was BAM’s wallet custody software provider.

Crypto analyst Marty explained that the heightened legal pressure the SEC is placing on Binance can only have three outcomes:

“First,Binance agrees to transparency and regulatory access in the US. Seems highly unlikely. Secondly, SEC with USA departmental influence slowly squeezes Binance out of the global markets.

Most likely. Finally, Binance delays, forcing a squeeze on the Spot ETF approvals, this will introduce additional pressure from financial giants globally. My thoughts this turns ugly.

Binance has their back against the wall. There is no doubt they are too powerful and have conflicts of interest all over the radar. No way ETF’s go live with this ongoing situation.”

According to Thanh Nguyen, “Binance .US stated that the SEC has not provided any evidence to support the allegation that customer funds have been unlawfully moved.”

AMB Crypto added:

The SEC contended that Binance.com, Binance.US, and BAM Trading should have registered as clearing agencies, broker-dealers, and exchanges, respectively. The unregistered offer and sale of Binance.US’ staking-as-a-service program additionally necessitated BAM Trading’s registration as a broker-dealer.

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