The United States Securities and Exchange Commission (SEC) has escalated its battle with Binance.US, a subsidiary of the world’s largest cryptocurrency exchange, Binance, accusing it of non-cooperation in an ongoing investigation. In a court filing, the SEC alleges that Binance.US’s holding company, BAM, has been uncooperative during the discovery process, raising concerns about the exchange’s transparency and compliance.
According to the SEC’s complaint, BAM, the parent company of Binance.US, has provided a limited number of documents – a mere 220 – during the discovery process. Of these documents, many are described as illegible screenshots or lack proper dates and signatures, making them of little value to the investigation. The SEC also asserts that BAM has been reluctant to make essential witnesses available for deposition, agreeing to only four depositions of individuals it deems appropriate. Furthermore, Binance.US has responded to requests for relevant communications with blanket objections and has refused to produce certain crucial documents.
This legal battle began when the SEC filed a lawsuit against Binance.US in June. The charges included unregistered securities offerings and alleged improprieties regarding the staking of Ethereum (ETH). The SEC argued that Binance.com, Binance.US, and BAM Trading should have registered as clearing agencies, broker-dealers, and exchanges, respectively.
The situation has witnessed significant leadership changes within Binance.US. The CEO of Binance.US stepped down from his position, followed by the resignations of the head of legal and the chief risk officer. Binance.US has not yet responded publicly to these allegations made by the SEC, leaving the cryptocurrency community and investors eagerly awaiting their stance on the matter.
As this legal battle unfolds, it highlights the growing regulatory scrutiny and compliance challenges faced by cryptocurrency exchanges operating in the United States. The outcome of this case could have broader implications for the cryptocurrency industry’s regulatory landscape in the country.
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