IMPORTANT POINTS:
- The Securities and Exchange Commission (SEC) emphasized that Binance US is not transparent in its operations.
- It is recalled that the company previously signed a consent agreement with the regulator to cooperate and ensure the protection of customers.
- The SEC also trained its guns on parent company Binance Holdings, clarifying that it “could pose risks to U.S. investors.”
The Securities and Exchange Commission (SEC) is currently conducting an investigation into the operations of Binance USA and, according to the regulator, the stock exchange doesn’t cooperate.
The SEC claims this is the case Inconsistencies regarding the security of US investors’ assets within the platform. Furthermore, the government agency also accused it Parent company, Binance Holdings.
The SEC memorandum, filed in the District Court of Columbia in Washington DC, references the following companies and individuals: Binance Holdings Limited, BAM Trading Services, BAM Management US Holdings and the CEO of Binance. Changpeng Zhao.
The details of the investigation into Binance US
SEC filings indicate that a Consent Order with the exchange to ensure the protection of customers’ investments and achieve greater transparency.
However, the organization is in the final hours accused Binance US of not cooperating and not to provide data in particular for the custody of Ceffu Wallet assets.
The SEC filing highlights the following: “BAM has not submitted a single document regarding Ceffu’s custody of Binance US customers’ assets“.
The regulator stated that parent company Binance Holdings may be interfering in Binance’s US operations, which “a risk for US investors“.
“Binance Holdings’ control and influence over BAM’s operations is so extensive that BAM cannot act independently of Binance Holdings.“, the document read.
Well, the SEC The justice problem will escalate with the aim that the exchange respects the agreements already made and provides all the documents requested in order to make the investigation carried out transparent.
Amid this, several very key Binance employees have resigned, including the CEO of US Brian Shroder the head of the legal department, Krishna Juvvadi and the risk director, Sidney Majalya.
