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US SEC files indicate that Binance.US is uncooperative with the investigation.

According to a recent court filing dated September 14, the United States Securities and Exchange Commission (SEC) has accused Binance.US of non-cooperation in the ongoing investigation against the crypto exchange.

The SEC highlighted that Binance.US’s holding company, BAM,

has provided a limited number of documents during the discovery process,

with some of them being unintelligible screenshots lacking dates or signatures.

Furthermore, the SEC stated that BAM has declined to produce key witnesses for deposition,

opting to agree to only four depositions of witnesses it deems suitable without consulting the SEC.

These developments indicate the challenges faced by the SEC in obtaining essential information and testimonies from Binance.US as part of their investigation.

“It has responded to requests for relevant communications with blanket objections and has refused to produce documents kept in the ordinary course of its business, claiming those documents do not exist, only for the SEC to later receive such documents from other sources.”

In addition to the previous information, the United States Securities and Exchange Commission (SEC) has expressed apprehension regarding Binance.US’s utilization of Ceffu,

a wallet custody software provided by Binance Holdings Ltd., the global entity.

The SEC highlighted that BAM, the holding company of Binance.US,

has provided inconsistent statements regarding the involvement of Ceffu and Binance in the management of wallets and customer funds.

These concerns shed light on the regulatory scrutiny surrounding the relationship between Binance.US and its global counterpart in terms of wallet and fund management.

SEC Raises Concerns Over Discrepancies in BAM’s Statements and Files Lawsuit Against Binance for Unregistered Offerings

According to the SEC, there have been discrepancies in the statements made by BAM Trading Services Inc.

(BAM), the parent company of Binance.US, regarding the custody software provider for their wallets.

Initially, BAM claimed that Ceffu was their own wallet custody software and services provider,

but later they stated that Binance was the provider.

This inconsistency has raised concerns among regulators, as it potentially violates a previous agreement designed to prevent the diversion of funds abroad.

On June 5, the Securities and Exchange filed a lawsuit against Binance, pressing 13 charges against the cryptocurrency exchange.

These charges include allegations of conducting unregistered securities offerings,

particularly related to products like Simple Earn, BNB Vault, and their staking program.

The SEC argues that Binance.com, Binance.US, and BAM Trading should have registered as exchanges,

broker-dealers, and clearing agencies, respectively.

Additionally, the SEC claims that the unregistered offer and sale of Binance.US‘ staking-as-a-service program necessitated BAM Trading to register as a broker-dealer.

These recent accusations by the SEC against Binance.US come at a time when the exchange is also facing internal challenges.

The CEO of Binance.US, Brian Shorder, has departed from the company, joining a growing list of top executives leaving the firm this year.

Following his departure, the head of legal and the chief risk officer of the exchange also resigned within a short span of time, contributing to the ongoing internal crisis.

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