According to the SEC, Binance.US is Not Providing What It Requires

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Last Updated on September 16, 2023 by Bitfinsider

According to the Securities and Exchange Commission, Binance.The US is not participating with a process agreement for its probe against the crypto exchange, having produced only 220 papers so far – well short of what the regulator claims is required.

The regulator has also requested information about customer assets, but BAM, the business behind Binance.US, has thus far refused to comply.

The SEC stated in a court filing on Thursday that BAM consented to give discovery pertaining to the custody, security, and availability of U.S. customer funds in June after the agency sued the exchange for violating various federal securities laws.

“BAM has only produced slightly more than 220 documents as of the date of this filing,” the SEC stated. “Many are unintelligible screenshots of bank account information, documents without dates or signatures, letters from counsel, and tables that appear to have been prepared for the purposes of this litigation, with no supporting evidence or verification by an individual with knowledge confirming the accuracy of the information.”

The SEC sued Binance and its founder, Chanpeng ‘CZ’ Zhao, in June, alleging, among other things, that they misrepresented the oversight of the Binance.US platform.

BAM, in particular, originally failed to provide details regarding Ceffu, a “newly rebranded Binance Entity” that appeared to hold customer assets, according to the SEC.

“BAM initially sought to defer Ceffu-related discovery as ‘non-priority,’ asserting that it was ‘unrelated to the current custody and control of Customer Assets,'” the SEC claimed. “However, given that BAM’s policy identified Ceffu as providing ‘wallet custody software and support services,’ during a July 7 meeting and confer, the SEC emphasised the need for this discovery, and BAM agreed to prioritise it.”

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