SEC Alleges Binance.US Non-Compliance: Are Your Crypto Assets at Risk?

EddieJayonCrypto

 6 Mar 24

tl;dr

Cryptocurrency exchange Binance.US is facing allegations from the SEC for not fully complying with requests for information about its customers' assets, with the regulator questioning whether Binance global employees have access to U.S. customers' assets. Despite Binance.US stating that it has compl...

Cryptocurrency exchange Binance.US is facing allegations from the SEC for not fully complying with requests for information about its customers' assets, with the regulator questioning whether Binance global employees have access to U.S. customers' assets. Despite Binance.US stating that it has complied with its obligations, the SEC is seeking further discovery to verify this, with heightened concerns about the security and control of customer assets.

The SEC sued Binance Holdings Ltd., BAM Trading Services, BAM Management U.S., and Binance founder Changpeng "CZ" Zhao last year, alleging that Binance Holdings and BAM Trading are violating U.S. securities laws. The regulator is concerned that Binance.US customer assets could be controlled by Binance employees outside the U.S. Despite a consent order directing Binance.US to ensure control of customer assets and launching expedited discovery, the SEC alleges that Binance.US employees have not fully complied with requests and have been less than helpful in addressing outstanding concerns.
Despite Binance.US stating that it has complied with its obligations, the SEC is seeking further discovery to verify this, which the exchange argues is exceeding the consent order's limitations.

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