The American sector of global cryptocurrency powerhouse, Binance US, is akin to a ship in troubled waters as it combats allegations of non-cooperation during an ongoing investigation by the United States Securities Exchange Commission (SEC). These claims further extend to accusations of violating federal securities law with respect to the company’s staking, clearing, and brokerage services.
Central to the controversy is Binance US’s use of Ceffu, a custody service supplied by Binance Holdings Ltd – the establishment that reigns over the Binance empire. This particular choice of action by Binance US has irked US regulators, raising concerns it may violate a pre-existing agreement aimed at prohibiting the movement of assets abroad.
Paired with these serious allegations are the SEC’s concerns about Binance US’s resistance towards the active investigation. With the SEC already expressing its dissatisfaction over the withholding of essential records and data by the cryptocurrency giant during the investigation, these factors raise eyebrows over potential discrepancies in the terms of the initial agreement. This accord was outlined with the intent for customer funds to only be accessible by local US staff, a key safety measure in the cryptocurrency exchange world.
However, Binance US has expressed a strong rebuttal to these allegations, brushing off accusations concerning Ceffu as “much ado about nothing”. The company further described the SEC’s request for heightened documentation as a meaningless quest into an uncharted territory with no definite outcome. The colossal cryptocurrency exchange maintained its stance that the facilitation of wallet creation through Ceffu does not implicate its international faction in terms of custody or access to their customers’ funds.
Amidst this regulatory storm, signs of turmoil are becoming visible inside the fortress as Binance US recently reported a notable workforce cutback, parting ways with a third of its employees. High-ranking departures include revered figures like Chief Executive Officer Brian Shroder, chief of legal, and chief risk officer, escalating rumors of an internal upheaval within the company. As this regulatory saga unfolds, only time will tell how this narrative evolves and shapes the future of Binance US and the broader realm of cryptocurrency exchanges.
Source: Cryptonews
