SEC pushes for court order against Binance US amid ‘uncooperative’ stance SEC pushes for court order against Binance US amid ‘uncooperative’ stance
Binance.US had previously sought court protection from the SEC's request for information.
2 min read
Updated: Sep. 15, 2023 at 2:10 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The U.S. Securities and Exchange Commission (SEC) has accused Binance.US of failing to cooperate, according to a Sept. 14 court filing.
SEC says Binance.US failed to provide the requested information
In the filing, the financial regulator stated that the exchange’s holding company, BAM Holdings, had produced 220 documents of mainly unintelligible screenshots without dates or signatures.
The SEC further claimed that the firm refused to produce essential witnesses for deposition, adding that it “responded to requests for relevant communications with blanket objections and has refused to produce documents kept in the ordinary course of its business.”
Additionally, the SEC claimed that Binance.US redirected its inquiry into the custody of customer assets to an offshore custodian named Ceffu. According to the financial watchdog, the crypto exchange had initially refused to provide the required information about its connection with Ceffu before making a turnaround and asking the regulator to ask Ceffu for details on
how it created BAM’s wallets.
“Defendants still cannot credibly explain the continued role of the Binance Entities in the custody and control of BAM’s crypto assets and Customer Crypto Assets or provide credible evidence that BAM personnel maintain sole possession, custody, and control of BAM company and Customer Assets in the United States.”
Consequently, the SEC is seeking a court order to compel the embattled exchange to produce the requested documents and to reject its opposition to the original consent order. Additionally, the SEC requests a 14-day extension for the discovery period, pending approval of its latest court filing.
Meanwhile, Binance.US had sought court protection from the regulator’s request for information which it had described as “troubling and inappropriate.” According to the firm, the SEC’s requests are a “fishing expedition” that is “overbroad and unreasonable.”
Binance.US top executives leave.
Several top executives of Binance.US and about one-third of its staff, including CEO Brian Shroder, head of legal Krishna Juvvadi, and chief risk officer Sidney Majalya, left the company over the past week.
The exchange had told CryptoSlate that the exits were necessary as it gave the platform more than seven years of financial runway to continue operating as a crypto-only exchange.
Mentioned in this article
Author 
Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
Featured Story
Advertise Here
In this article
Binance.US
Binance.US will provide secure and reliable cryptocurrency trading to users in the United States.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.