The court called on the SEC and Binance.US to cooperate


The court refused to oblige the American division of Binance to provide SEC extended information regarding the processing of client assets, writes The Block.

Instead, District Judge Zia Farooqi urged the parties to work together.

Previously, the SEC accused Binance.US of being unwilling to cooperate in the disclosure of information. 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.

The commission asked the court to order BAM to provide information about the custody of client assets, the wallet control system and the company’s financial records, 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.

Amid proceedings with the SEC, Binance.US underwent layoffs, and CEO Brian Schroeder left the company. Following him were the heads of the legal department, Krishna Juvvadi, and the head of the risk department, Sidney Majalya.

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.

Recall that on June 5, the SEC filed a lawsuit against Binance and its CEO Changpeng Zhao. The commission brought 13 charges, including the sale of unregistered securities.

Found an error in the text? Select it and press CTRL+ENTER

ForkLog newsletters: keep your finger on the pulse of the Bitcoin industry!

Leave a Reply