© Reuters.
The U.S. Securities and Exchange Commission (SEC) has raised concerns over the “lack of transparency” from crypto exchange Binance US in its ongoing investigation. The regulator, in a court filing dated September 14, accused Binance US’s holding company, BAM, of providing only 220 documents during the discovery process, including “unintelligible screenshots and documents without dates or signatures.”
This comes following a lawsuit filed by the SEC against Binance on June 5, where the platform faced 13 charges including breaking U.S. securities laws, failing to restrict U.S. investors from accessing Binance.com, and operating as an unregistered exchange, broker, and clearing agency.
The SEC also expressed concerns about customer assets falling under the control of Ceffu, a wallet custody software service owned by Binance Holdings Ltd., contradicting a previous agreement that stated these assets should be solely in BAM’s custody and ‘complete control’ in the United States. The regulator argued that Ceffu appeared to have control of customer assets through their role in the establishment of wallets and keys shards related to BAM Customer Crypto Assets.
Furthermore, the SEC accused Binance US of responding to its demands for relevant communications with “blanket objections,” refusing to produce documents it claimed did not exist, and consenting to only four testimonies from witnesses deemed suitable by BAM.
These allegations come amidst a wave of executive departures from Binance US. Earlier this week, both the Chief Risk Officer (CRO) and the Head of Legal resigned from their positions at the company, following other high-profile departures earlier this year.
As of today, Friday, Binance.US has yet to provide an official response to these allegations by the SEC.
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