There is endless news about Binance in the cryptocurrency world. There are new developments almost every day in the ongoing legal process with the SEC. The latest development came from the SEC. The SEC has a new accusation. Let’s look at the details.
The difficult process continues for Binance
There is news from the US Securities and Exchange Commission (SEC). In an escalating legal battle, he accused Binance.US of failing to cooperate with an ongoing investigation. The regulator alleges that the cryptocurrency exchange’s staking, clearing and brokerage services violate federal securities law, recently revealed in unsealed court filings.
The SEC’s primary concern revolves around Binance.US’ continued dependence on Ceffu, a custody service provided by Binance’s international affiliate. This dependence on ceffu is striking. Accordingly, it is perceived as a violation of a previous agreement designed to prevent assets from being transferred offshore.
Binance.US responds to regulatory review
The SEC reasons that the company provided limited evidence during the discovery process. Thus, he expresses his reservations regarding the compatibility of Binance.US. They argue that this evidentiary gap raises questions about whether the exchange complied with the consent decree, which sought to restrict access to funds only to domestic U.S. personnel.
In response to the SEC’s investigation and concerns regarding Ceffu, Binance.US staunchly defended its position. The exchange argues that the regulator’s concerns about Ceffu are exaggerated and unfounded. He also describes the request for additional documents as a “futile effort.”
What do the court documents say?
Court documents show that on Thursday, the US SEC accused Binance.US of failing to cooperate with the investigation. On the other hand, it shows that the custody services provided by Ceffu are questioned as violating an agreement to prevent the flow of assets abroad.
Binance.US, as the provider of the Ceffu software, argues that the mere act of creating the wallet does not give the international arm of Binance Holdings Ltd custody or access to customer funds. The exchange states that customers’ assets remain safe. It also challenges the SEC’s claims by emphasizing that it is not affected by the custody arrangement.
different sizes
The SEC’s investigation is delving deeper into the use of Binance.US and Ceffu. On the other hand, cryptocurrency exchanges are facing increasing regulatory pressure. The outcome of this investigation will have far-reaching impacts on the legal framework and practices in the digital asset industry. It will also set a precedent for future regulatory action.
When we look at it as Kriptokoin.com, the SEC’s moves inevitably raise suspicion in cryptocurrency investors. This situation also raises question marks for investors who want to enter the field. It is already a matter of curiosity how the court process will end.
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