In a recent court filing on a Monday, the Securities and Exchange Commission (SEC) has strongly criticized Binance.US, claiming that the company is taking too much time to hand over important documents. The SEC has now asked the court to step in and order an inspection of the company, making the legal battle even more intense.
Seeking Information About Customer Assets
The SEC's main concern is getting specific information about the assets of Binance.US customers. But so far, BAM, the company that runs Binance.US, has not given the SEC what it's looking for, which has raised concerns at the regulatory agency.
BAM's Defense
BAM has said that both the court and the SEC should accept the information it has given them. This information includes carefully written explanations, statements, and a limited set of documents about how they handle customer assets. BAM is trying to downplay any worries about the situation.
Previous Legal Battle
These accusations are happening just before a planned hearing in the U.S. District Court for the District of Columbia. The SEC originally sued Binance.US and its founder, Changpeng "CZ" Zhao, for breaking several federal securities laws. The SEC's recent request for a court-ordered inspection shows that they are determined to pursue their case very seriously.
Urgent Need for Inspection
The SEC has made it clear that they want to not only look at the documents but also inspect BAM's technology setup and software, among other things. They say that the progress they've made in their investigations so far is slow, which is why they need this inspection urgently.
Many Executives Leaving
On top of the legal fight, the SEC has also noticed that many important people are leaving Binance.US. This includes CEO Brian Shroder. The head of legal, Krishna Juvvadi, and the chief risk officer, Sidney Majalya, have also left recently.
Increased Worries
The SEC is concerned about this "mass exodus" of key employees. They think that these departing executives might have important information about how Binance.US handles customer assets. Because of this, the SEC is stressing that there's a big need to quickly find out more about these issues, making it clear that the situation is urgent.
That’s it for now.. Stay tuned for more updates…
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