Regulators accuses Binance US of non-cooperation in ongoing investigation
The SEC claims that Binance.US has provided limited and unintelligible documents, refused to produce essential witnesses, and made inconsistent statements
The United States Securities and Exchange Commission (SEC) has accused the Binance.US, of non-cooperation in an ongoing investigation against the cryptocurrency exchange. Binance.US is a daughter company of the largest cryptocurrency exchange Binance.
In a court filing, presented by SEC, it is stated that Binance.US’s holding company, BAM, has only produced 220 documents during the discovery process, many of which are illegible screenshots and documents without dates or signatures. The SEC also claimed that BAM has refused to produce essential witnesses for deposition, agreeing only to four depositions of witnesses it deems appropriate. Binance.US has responded to requests for relevant communications with blanket objections and has refused to produce certain documents.
The SEC filed a lawsuit against the Binance US in June, pressing charges for unregistered securities offerings and of its staking ETH. The SEC argued that Binance.com, Binance.US, and BAM Trading should have registered as clearing agencies, broker-dealers, and exchanges, respectively.
The CEO of Binance.US pull out from its position, followed by the resignations of the head of legal, and the chief risk officer. Binance.US has not yet responded to these allegations made by the SEC.