The U.S Securities and Exchange Commission (SEC) has accused crypto exchange Binance.US of not cooperating in a probe into the company’s staking, clearing and brokerage services which the regulator allege violates federal securities law.
The SEC also alleged that the crypto exchange’s use of Ceffu, its parent company’s custody service, violates a previous deal intended to stop assets being transferred overseas.
The SEC also accused Binance.US’ holding company, known as BAM, of providing inadequate information, noting that BAM provided “only approximately 220 documents … many that consist of unintelligible screenshots and documents without dates or signatures.”
The SEC is worried about the Binance.US’ use of Ceffu, a wallet custody software provided by the international entity Binance Holdings Ltd.
Binance.US had brushed off the regulator’s concerns over Ceffu as “much ado about nothing,” and its demand for more documents a “futile fishing expedition.”
Earlier this week, Binance.US announced the departure of its Chief Executive Officer Brian Shroder as well as the layoff of one-third of its workforce in the wake of mounting regulatory woes.