US SEC Accuses Binance.US of Non-Cooperation in Ongoing Investigation

Court Filing Highlights Lack of Cooperation

The United States Securities and Exchange Commission (SEC) has accused Binance.US of non-cooperation in the ongoing investigation against the crypto exchange, according to a court filing. The SEC noted that Binance.US's holding company called BAM has produced only 220 documents during the discovery process. Many of these documents were described as "unintelligible screenshots and documents without dates or signatures."

Failure to Produce Essential Witnesses

The SEC further revealed that BAM has refused to produce essential witnesses for deposition, instead agreeing to only four depositions of witnesses it deemed appropriate. In addition, Binance.US has responded to requests for relevant communications with blanket objections and has refused to produce business documents, claiming they do not exist, despite the SEC later receiving such documents from other sources.

Concerns Over Wallet Custody Software

The SEC also expressed concerns about Binance.US's use of Ceffu, wallet custody software provided by Binance Holdings Ltd. The SEC highlighted inconsistencies in BAM's statements regarding Ceffu's and Binance's involvement in the wallet and customer funds management. Originally, BAM claimed that Ceffu was its wallet custody software and services provider, but later stated that Binance was the provider. This raised concerns about the violation of a prior agreement to prevent funds from being diverted abroad.

13 Charges Filed Against Binance.US

This latest development comes as the SEC filed a lawsuit against Binance on June 5, pressing 13 charges against the crypto exchange. These charges include unregistered securities offerings, the Simple Earn and BNB Vault products, and its staking program. The SEC argued that Binance.com, Binance.US, and BAM Trading should have registered as clearing agencies, broker-dealers, and exchanges, respectively. The unregistered offer and sale of Binance.US' staking-as-a-service programme required BAM Trading to register as a broker-dealer as well.

Internal Crisis at Binance.US

The SEC's accusations against Binance.US come at a time of internal crisis for the exchange. Binance.US CEO Brian Shorder recently resigned, joining a growing list of top Binance executives who have left the firm this year. The head of legal and the exchange's chief risk officer also resigned within days of each other.

Binance.US has not provided a comment on the accusations made by the SEC.