BTC-Newswire

SEC Accuses Binance of Being ‘Uncooperative’ in Latest Court Filing

Press Releases Crypto News BeInCrypto SEC Accuses Binance of Being ‘Uncooperative’ in Latest Court Filing

The US Securities and Exchange Commission (SEC) filed new papers expressing frustration at Binance.US’s lack of cooperation. According to the agency, the exchange’s response failed to allay concerns about the status of customer funds.

Despite good faith attempts to cooperate, the agency said that Binance has not proved that customer assets are held in the US. It has also not proved that its business is separate from the international entity.

SEC Petitions Court on Issues Binance.US Suggests Are Baseless

Instead, Binance.US allegedly produced 220 pages of documents with screenshots that lack authority due to the absence of signatures and dates. The SEC also claims the company denied access to key staff members it intended to depose, including chief executive Changpeng Zhao.

Binance.US also allegedly deferred the agency’s request to understand the custody of customer assets to Ceffu, an offshore custodian. The SEC alleges that, despite denying Ceffu’s initial involvement, Binance later admitted the custodian created the keys for Binance.US’s cold wallets.

As a result, the agency asks the court to order Binance to produce responsive documents and deny its opposition to the original SEC consent order. It also requests an extended discovery period of 14 days should its latest court filing be approved.

The SEC filed its original order against Binance.US on June 17, alleging inappropriate relationships between the Binance.US platform and Binance.com. It accused Binance.US of mismanaging customer funds, moving large amounts offshore, and ceding much of its management to other Binance entities.

Understand the difference between Binance and Binance.US here.

Earlier this week, Binance.US said the SEC had no evidence of mismanagement and has demonstrated “that all customer assets are fully accounted

Go to Source to See Full Article
Author: David Thomas

Did you like this?
Tip BTC Newswire with Cryptocurrency