SEC Accuses BinanceUS of Non-Cooperation in Probe Over Securities Law Violations BinanceUS, the American arm of the global cryptocurrency exchange giant Binance,
has been accused of non-cooperation in an ongoing probe by the US Securities Exchange Commission (SEC).
The SEC has alleged that BinanceUS's staking, clearing, and brokerage services violate federal securities law. In a court filing released Thursday,
SEC has targeted BinanceUS's use of Ceffu, a custody service provided by Binance Holdings Ltd, the international arm of the Binance empire.
U.S. regulators are concerned that
this use of Ceffu custody may breach a previous agreement designed to prevent assets from being moved overseas.
The SEC also voiced its concerns about
BinanceUS's handling of the probe in the court filing.
The regulatory agency claimed
that the company's holding entity, known as BAM,
had provided a limited and inadequate amount of evidence during the discovery process. According to the
SEC, BAM had furnished only around 220 documents, many of which were described as
"unintelligible screenshots'' and lacked dates or signatures.
The SEC's contention is that this limited cooperation
from BAM raises questions about whether the company is violating the terms of the earlier consent order. This order
was established to ensure that only local U.S. staff have access to customer funds, a crucial safeguard
in the realm of cryptocurrency exchanges.
