Taranga News

Breaking News for Nation and World


Binance vs. SEC Lawsuit Update September 17: With Documentation and Other Problems

The US Securities and Exchange Commission (SEC) has claimed that Binance failed to provide sufficient documentation despite previously agreeing to expedited discovery.

BAM, the organization responsible for Binance’s US affiliate, has submitted approximately 220 documents. However, legal representatives for the SEC allege in a new filing that many of these documents include “vague” screenshots and lack required dates or signatures.

Binance-SEC Courtroom Drama

The SEC initiated legal action against Binance on June 5, bringing a total of 13 charges against the platform. These charges include violations of US securities laws and failure to prevent investors in the country from accessing Binance.com and operating without proper registration as an exchange, broker and clearing agency.

Bringing a new twist to the ongoing court drama, the SEC has accused Binance of not cooperating with the ongoing investigation, according to unsealed documents.

Furthermore, the financial regulator also claimed that BAM had refused to provide witnesses required to testify. Instead, the organization chose to provide only four statements from witnesses it had independently selected.

“It has responded to requests for relevant communications with blanket objections and has refused to produce documents it maintains in the ordinary course of its business, claiming those documents do not exist, only to later provide the SEC with other Such documents will be obtained from sources.”

The SEC also expressed concerns about Binance.US’s use of Ceffu, a custody service offered by Binance’s international arm – Binance Holdings Ltd. – which was designed to prevent the transfer of assets abroad. Appears to be in violation of the agreement.

The SEC reported that BAM made conflicting statements regarding the roles of Cefu and Binance in wallet management and customer funds. Initially, BAM claimed that Cefu served as its wallet custody software and service provider, but later, the entity said that Binance was its wallet custody software provider.

Employees walk out at Binance.US

In a letter to its employees in June, Binance anticipated a lengthy and costly legal battle with the SEC. As a result, it requested Binance.US management to reduce the workforce. Amid the internal challenges facing Binance.US, several high-ranking executives have departed from the company.

Notably, CEO Brian Schorder recently became the latest member of the growing list of top executives leaving the company this year.

Special Offer (Sponsored)
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off fees on Binance Futures your first month. (terms).

PrimeXBT Special Offer: Use this link to register and enter code CRYPTOPOTATO50 to receive up to $7,000 on your deposits.

source: cryptopotato.com

Leave a Reply

Your email address will not be published. Required fields are marked *