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SEC Accuses Binance of Being Uncooperative

The Securities and Exchange Commission (SEC) has recently taken issue with Binance, alleging the company’s failure to provide sufficient cooperation during a critical document discovery phase in the ongoing investigation against the crypto exchange.

Binance’s Cooperation Leaves Much to be Desired

According to the SEC, Binance US’s operator, BAM, had agreed to an expedited discovery process but failed to adequately fulfill this agreement. Of the approximately 220 documents submitted by BAM, many were identified as being unintelligible screenshots or incomplete documents lacking dates or signatures. In addition to this, the company has refused to offer crucial witnesses for deposition, choosing to provide only four depositions of witnesses it had personally selected.

BAM’s Approach Creates Hurdles for The Investigation

The SEC attorneys expressed concerns regarding BAM’s non-cooperative stance, claiming that the entity responded to requests for relevant information with blanket objections and denied the existence of certain documents typically maintained in the ordinary course of business. These documents, however, later surfaced from other sources. Binance.US did not immediately respond to these allegations.

SEC’s Concerns Over Binance’s Use of Ceffu

In addition to the document access issues, the SEC also raised concerns about Binance.US’s use of Ceffu, a custody service provided by Binance affiliate. The agency claimed it observed inconsistencies in BAM’s statements regarding the roles of Ceffu and Binance in the management of wallets and customer funds. The SEC alleges that BAM may have violated a Consent Order by entrusting a Binance Entity with its crypto assets against the agreement’s terms.

The Aftermath of the SEC’s Allegations

Following the SEC’s allegations, Binance has faced increasing internal turmoil. Several Binance.US executives, including CEO Brian Shroder, head of legal Krishna Juvvadi, and chief risk officer Sidney Majalya, have recently left the company amidst two rounds of layoffs. As these events unfold, the SEC continues to press its case against Binance with 13 charges, including claims of operating unregistered exchanges and problems related to the Binance.US affiliate.

The ongoing dispute between the SEC and Binance underscores the challenges that global businesses often face in meeting the regulatory expectations of multiple jurisdictions. With Binance’s future uncertain and the SEC continuing to press its case, the ultimate outcome of this legal squabble could hold significant implications for the wider tech and finance industries.

Key Points

What is the SEC’s issue with Binance?

The SEC has accused Binance of not providing sufficient cooperation during an ongoing investigation, especially during the document discovery phase of the process.

What inconsistencies has the SEC noted in Binance’s conduct?

The SEC has noted inconsistencies in Binance’s statements regarding the roles of Ceffu and Binance in the management of wallets and customer funds, raising concerns about potential Consent Order violation.

What has been the impact of the SEC’s allegations on Binance?

The allegations have led to internal turmoil within Binance, with several key executives departing the company amidst two rounds of layoffs.



Greetings, I go by the name of Flavien - a devoted supporter of cryptocurrency and a tech aficionado who has been keeping track of the developments in the world of blockchain and digital currencies since 2019. The potential of decentralized digital currencies to revolutionize our financial systems has captivated me, and I'm constantly exploring the most recent trends and advancements in this ever-evolving industry. As a content creator for Krypto Channel, my aim is to deliver informative and engaging articles that shed light on all aspects of the crypto world. Whether you're a seasoned investor or simply curious about blockchain technology, I am here to keep you updated on the latest happenings and trends. Being part of this lively and dynamic community is an honor, and I am thrilled to share my passion for cryptocurrency and blockchain with all of you.
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