The United States Securities and Exchange Commission recently made some allegations against the popular crypto exchange Binance. It accused the platform of infringing the federal securities law through transacting assets overseas. On Thursday, the securities regulatory agency submitted a court filing that disclosed the crypto exchange’s dependency on a custody partner named Ceffu.
The SEC Accuses Binance of Violating the Securities Laws via Alleged Asset Transfer Overseas
This is supposedly infringing the agency’s regulations and thus the regulator intends to impose restrictions on Binance’s foreign trade. Formerly during the year 2023, the agency made accusations against the crypto exchange’s chief executive officer Changpeng Zhao. As per the regulatory agency, the CEO illegally intervened in the activities carried out by Binance.US.
In addition to this, the agency noted in the filing that Binance’s CEO allegedly misled the consumers. Apart from that, the regulatory agencies had also implemented restrictions over the transfer of the firm’s assets abroad. A former filing that the US-affiliated platform Binance.US (formerly named BAM Trading) submitted disclosed the establishment of “verified accounting.”
The Regulator also Reveals BAM Trading’s Inadequate Information without Signatures and Dates
This focused on proving that the safety of the entirety of the client funds. Moreover, BAM Trading argued that it has clarified the queries of the SEC by presenting a 5000-page-long documentary discovery. In a recent court submission, the SEC claimed that Binance is utilizing Ceffu. It is the wallet custody-related software and the international arm of Binance provided.
According to the SEC, the platform is using it to resume international trade. The allegations take into account the securities law infringement through the brokerage and staking services. The regulatory bodies also highlighted the inappropriate information that BAM Trading provided. The majority of the accusations dealt with unintelligible documents or screenshots without signatures or dates.
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