2023-09-18 19:10:11
© Reuters. SEC alleges ‘urgent need for inspection’ of Binance.US in lawsuit
CriptoFácil – The United States Securities and Exchange Commission (SEC) wants a Washington DC court to approve an “urgent inspection” of Binance.US, the US arm of cryptocurrency exchange Binance.
In a court case filed this Monday (18), and seen by CoinDesk, the regulator alleged that the company did not present the documents requested by the agency in ongoing legal proceedings.
The SEC sued Binance.US, its parent company Binance Holdings, and the company’s founder Changpeng Zhao (CZ) in June this year on charges of unlicensed operations.
SEC x Binance.US
In the latest document, the SEC pointed to the “urgent need for an inspection” of Binance.US due to concerns about Binance’s use of the Ceffu (Binance Custody) custody platform.
According to the regulator, Ceffu may also be serving Binance.US as a way to send US customer funds out of the country. This would be violating a prior agreement between the parties not to do so.
Binance.US and the SEC entered into this agreement because the exchange was unable to convince the agency that controlled its customers’ assets.
“The SEC seeks an order compelling BAM [holding BAM Trading Services da Binance.US] to produce documents and communications relating to any entity that provides portfolio custody software and related services,” the document says.
The regulator further accused the company of providing “inconsistent representations about important facts”. Furthermore, it stated that Binance.US provided documents and information slowly and obstructed entire categories of information that “would likely shed light on its shaky claims regarding the custody of customer assets.”
Finally, the SEC also called CZ “an individual who considers himself to be outside the jurisdiction of any court.” In this sense, he asked the court to force the exchange to provide the statements, communications and other information requested by the regulator.
When contacted, Ceffu said it is a “completely independent third-party technology service provider”. Therefore, it is not part of Binance
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