SEC's Claims Against Binance: Notable Lawyer Sheds Light
Date: 2023-09-17 Author: Dima Zakharov Categories: CRYPTO PAYMENTS
The SEC's Allegations: A Closer Look
The SEC has leveled allegations at all American entities associated with Binance, claiming they have hidden crucial information regarding who controls their clients and resources. Additionally, the regulator has raised concerns about non-compliance with other critical requirements. According to representatives from the SEC, "BAM Trading refuses to provide anything other than extremely limited information to ensure that BAM's assets are not under the control of Binance Holdings Limited and its founder, Changpeng Zhao."
SEC's Disappointment with Binance
John Reid Stark has expressed the SEC's evident disappointment with Binance, and it seems warranted. As a benchmark, the regulatory body pointed out that BAM's external auditor provided over 6,500 documents related to the storage and control of digital assets, some of which BAM supplied to a private auditor but not to the SEC. This stark difference is significant compared to the 220 documents submitted by the exchange's leadership. According to experts, this disparity could lead to sanctions and other penalties against the platform and its leaders.
SEC's Demands and Legal Action
Since BAM Trading has refused to provide evidence regarding the safety of clients and assets, the SEC is seeking a court order to compel them to do so and conduct an "access review." Additionally, SEC members wish to reject BAM Trading's request for a court order and demand an extension of the accelerated information disclosure period.
