SEC Alleges Non-Compliance in Information Sharing
Following the lawsuit, a consent order was signed by Judge Amy Berman Jackson, mandating Binance.US to demonstrate control over its customers’ assets. This order also initiated a phase of expedited discovery to ascertain compliance. However, the SEC has reported difficulties in obtaining complete disclosure from Binance.US, indicating a reluctance or inability on the part of Binance.US employees to furnish all requested materials or satisfactorily address inquiries regarding asset management and control mechanisms.
Binance.US Responds Amid Ongoing Legal Battle
In response to the SEC’s allegations, Binance.US has defended its compliance efforts, emphasizing its cooperation with document requests and the provision of evidence supporting its control over customer assets. The exchange contests the SEC’s continued demand for information as exceeding the boundaries of the consent order. Additionally, Binance.US refutes claims of inadequate monitoring of asset transfers and mismanagement of customer funds.