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<p>The post <a rel="nofollow" href="https://coinpedia.org/news/sec-vs-binance-sec-investigation-uncovers-binance-uss-troubling-predicament/">Binance US Custody Under Fire Due to Alleged Dishonesty; Is Disaster Incoming?</a> appeared first on <a rel="nofollow" href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>Adam Cochran, a prominent figure in the crypto world, has voiced serious reservations regarding the rebranded <a href="https://coinpedia.org/news/breaking-news-binance-us-ceo-resigns-is-the-exchange-on-brink-of-collapse/">Binance Custody</a>, now known as <a href="https://coinpedia.org/news/binance-vs-sec-update-sec-takes-aim-at-binance-us-over-ceffu-agreement-violations/">Ceffu</a>. He alleges that Binance US’s custodial service is essentially an extension of Binance International and accuses them of dishonesty in their dealings with the courts.</p> 
<p>What’s going on? How much truth lies behind the issue? Let’s dive in deep. </p> 
<h2 id="cochran-speaks-out" data-name="cochran-speaks-out" class="wp-block-heading"><strong>Cochran Speaks Out</strong></h2> 
<p>In a series of tweets, Cochran further highlights that Binance US is relatively small, suggesting that auditors should have no difficulty examining their financial records. He expresses concern, stating that if they cannot maintain accurate financial records domestically, it raises questions about the potential chaos in their international operations.</p> 
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   <p lang="en" dir="ltr">1/3<br><br>Damn.<br><br>Even around the redacted part this is juicy. External auditor making redacted testimony, Binance US failing to produce, all focused on Ceffu.<br><br>Seems the SEC may have already pointed out what I did in my earlier thread <a href="https://t.co/UGnUKSdJIQ">pic.twitter.com/UGnUKSdJIQ</a></p>— Adam Cochran (adamscochran.eth) (@adamscochran) <a href="https://twitter.com/adamscochran/status/1702488886998384781?ref_src=twsrc%5Etfw">September 15, 2023</a>
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<p>One of the most striking points in Cochran’s tweets is the reference to “auditor concerns.” In an industry where trust is paramount, financial institutions aim to avoid any signs of concern from their auditors. Cochran underscores the gravity of these concerns, describing them as the last thing any organization wants to face, especially when dealing with regulatory scrutiny.</p> 
<p>Read More: <a href="https://coinpedia.org/news/binance-vs-sec-lawsuit-heats-up-as-sec-unseals-confidential-documents-heres-what-exposed/">What’s in the Sealed Documents Against Binance? SEC Set to Expose Soon!</a></p> 
<h2 id="leadership-shake-up-raises-eyebrows" data-name="leadership-shake-up-raises-eyebrows" class="wp-block-heading">Leadership Shake-Up Raises Eyebrows</h2> 
<p>Recent developments have witnessed the departure of CEO Brian Shroder and two key executives, Krishna Juvvadi, Head of Legal, and Sidney Majalya, the Chief Risk Officer, from Binance US. These departures not only cast doubts on Binance’s stability but also mirror broader trends in the crypto industry. </p> 
<p>Senior figures are opting to distance themselves due to increased <a href="https://coinpedia.org/crypto-live-news/sec-accuses-binance-us-of-lackluster-document-production-in-court-filing/">regulatory scrutiny</a>. Do they know something we don’t?</p> 
<h2 id="binances-defensive-plan" data-name="binances-defensive-plan" class="wp-block-heading"><strong>Binance’s Defensive Plan</strong></h2> 
<p>In response to these challenges, Binance US has initiated a multi-faceted strategy, including significant layoffs and the sale of shares owned by co-founder <a href="https://coinpedia.org/news/binance-ceo-cz-dispels-fud-affirms-no-liquidity-concerns/">Changpeng Zhao</a> (CZ). Despite these measures aimed at ensuring sustainability, the exchange has yet to comment on the recent wave of executive departures.</p> 
<p>If Binance faces closure, it could lead to a sharp decline in the prices of Bitcoin and other cryptocurrencies, triggering widespread market panic. Given Binance’s substantial role in global crypto trading, a shutdown would result in a “supply shock,” severely disrupting market dynamics.</p> 
<p>Also Read: <a href="https://coinpedia.org/news/binance-ceo-cz-dispels-fud-affirms-no-liquidity-concerns/">Is Binance in Trouble? CZ Says No, Highlights Recent Accomplishments</a></p>

Binance US Custody Under Fire Due to Alleged Dishonesty; Is Disaster Incoming?

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