The court called on the SEC and Binance.US to cooperate
Date: 2023-09-19 Author: Karina Ziganova Categories: BLOCKCHAIN
As a result, Judge Zia Farooqi called on the parties to work together.
The SEC accused Binance.US of being uncooperative when it comes to information disclosure. According to the department, the holding company of the exchange, BAM, delayed the preparation of the requested documents.
The Commission also indicated that the platform continues to use the services of the Ceffu custodial service, contrary to previous agreements.
Binance.US called the SEC's requests for documentation "too broad" and "unreasonably burdensome."
“I need you all to try to lower the temperature, forget the past and try to give me some of the things that you think will help clear things up,” Zia Farooqi said.
From now on, the commission asked the court to oblige BAM to provide information about the custody of client assets, the wallet control system and the company’s financial statements, including the general ledger.
The SEC was also interested in data on the exchange’s cooperation with Ceffu. According to the department, the custodial service is a “recently renamed division of Binance,” which apparently controls the assets of American clients.
Binance.US underwent layoffs in connection with the SEC proceedings, and CEO Brian Schroeder left the company. After him, the head of the legal department, Krishna Juvvadi, and the head of the risk sector, Sidney Majalya, retired.
In September, the daily trading volume on the platform dropped to $2.97 million. For example, on September 16, the figure was $5.1 million versus $230 million a year ago.
On June 5, the SEC filed a lawsuit against Binance and its CEO Changpeng Zhao. 13 charges were brought by the commission, including the sale of unregistered securities.
