The Securities and Exchange Commission (SEC) of the United States has investigated lack of cooperation with Binance.US.
In a recent court filing, the SEC criticized Binance.US, accusing its holding company, BAM, that it submitted only a paltry 220 documents during the court proceedings. Many of those documents, according to the SEC, were loaded with incomprehensible content, without essentials date or signature.
The SEC further accused BAM of avoiding providing vital witnesses to testify, choosing to cooperate with only four statements that he considered appropriate. Moreover, regulatory the authority claimed that Binance.US responded to requests for relevant communications lump-sum objections and asserted that certain documents key to their business do not exist. Ironically, the SEC later obtained some of these allegedly non-existent documents from alternative sources, which raised serious concerns about the transparency of the stock exchange. The SEC also expressed concern over Binance.US’ use of Ceffu, a custodial software over the wallet provided by the global entity Binance Holdings Ltd.
BAM’s inconsistent statements regarding Ceffu’s role in managing the wallet i by customer funds have attracted the attention of the SEC. Initially, BAM claimed Ceffa as its own wallet custodian software and service provider, but later changed its stance and argued that Binance fills that role. This inconsistency led the SEC to question whether use of Ceffu by Binance.US in violation of the foregoing agreement designed to prevent the diversion of funds abroad.
The SEC’s legal battle against Binance began on June 5, with the regulatory body brought 13 charges against the crypto exchange. These charges included unregistered offers securities, as well as accusations related to Simple Earn and BNB Vault products and their investment program.