Last Updated on 16 September 2023 by Admin
The United States SEC has submitted a memorandum in favour of its petition to force Binance to perform specific activities, marking a significant move in the ongoing investigation into the exchange’s activities.
This new document is part of the SEC’s continuing action against the company for breaking securities laws and functioning as an unregistered exchange, broker, and clearing agency in the U.S, which was first filed on June 5 this year.
Binance Holdings and its CEO, Changpeng Zhao (CZ), were named by the US Securities and Exchange Commission as among those who had refused to answer questions concerning the safety and accessibility of client funds in the United States.
Very Little Information
Over 60 days after the Court granted permission, the regulatory body said that Binance partner BAM Trading Services had refused to give “anything beyond extremely limited information.” According to the document filed, the SEC on September 14, 2023 wants to know whether Binance and CZ is exercising control over BAM’s client assets.
Furthermore, the agency was concerned that Binance could have already broken the Court order with the little details it has supplied. The SEC claims to have sent out discovery requests designed to elicit details that would ensure all client and BAM assets are accounted for. In addition, BAM had only agreed to four witness depositions despite the fact that their testimony was deemed crucial.
The SEC filing was released at the same time that Binance’s US Head of Legal and Chief Risk Officer left the business, continuing a trend of high-level departures in recent times.