The U.S. Securities and Exchange Commission (SEC) has accused Binance.US, the American arm of the global cryptocurrency exchange, of failing to provide adequate information.
In a joint status report to a Washington, D.C. District Court on March 5, the SEC claimed Binance.US hasn’t answered questions, particularly concerning the custody of customer assets.
The SEC has requested the court’s intervention to expedite the discovery process, asserting that Binance.US has not produced sufficient details to address the regulator’s concerns about whether Binance employees outside the U.S. had access to Binance.US customer assets.
The SEC’s investigation, initiated in June 2023, focuses on whether Binance.US has maintained complete autonomy over its control of customer assets, especially in light of potential access by Binance Holdings Limited employees to these funds via Amazon Web Services servers.
Binance.US has responded to the SEC’s charges, asserting that it has adhered to all demands for information from the SEC.
The exchange has contended that the accusations concerning the safety of customer funds are baseless. It emphasized that it has exceeded its legal responsibilities by handing over a vast array of documents.
Furthermore, Binance.US has appealed to the court to halt the expedited discovery process, claiming that the SEC’s measures have inflicted significant harm on the company, resulting in the loss of banking relationships, a decrease in user activity, and a notable reduction in its workforce.
