Binance v SEC Lawsuit Update September 17: Legal Challenges Continue
Binance.US, facing legal action from US regulators, has recently made headlines by downsizing its staff significantly. This move comes as the legal battle with the US Securities and Exchange Commission (SEC) intensifies, with the SEC raising concerns about the documentation provided by Binance.
The SEC initiated legal action against Binance on June 5th, bringing forth a total of 13 charges against the cryptocurrency platform. These allegations include violations of US securities laws and the failure to prevent unauthorized US investors from accessing Binance.com.
However, the latest twist in this ongoing courtroom drama is the SEC's claim that Binance has not been cooperating effectively in the investigation. Despite Binance's earlier agreement to expedited discovery, the SEC has alleged that the provided documents lack essential details, with many consisting of "unintelligible" screenshots and missing crucial dates and signatures.
Moreover, the SEC has raised concerns about the availability of essential witnesses for deposition. Instead of making key witnesses accessible, Binance's affiliate, BAM, has provided only four depositions, independently chosen by them.
In addition to these issues, the SEC has questioned Binance.US's use of Ceffu, a custody service offered by Binance Holdings Ltd, the international arm of Binance. The SEC believes that this usage may violate a previous agreement aimed at preventing the transfer of assets abroad. The regulator highlighted the conflicting statements made by BAM regarding the roles of Ceffu and Binance in wallet management and customer funds.
Binance's internal challenges are evident, as the company anticipated a protracted and costly legal battle with the SEC back in June. As a result, Binance.US has undergone significant staff reductions, with high-ranking executives, including CEO Brian Shorder, leaving the company.
The legal battle between Binance and the SEC continues to unfold, with ongoing disputes over documentation and cooperation. The downsizing of Binance.US staff further underscores the challenges the cryptocurrency platform faces as it navigates this complex legal landscape. Investors and enthusiasts alike will be closely watching for further developments in this high-stakes courtroom drama.