The US Securities and Exchange Commission (SEC) has shed light on a series of inconsistencies and allegedly uncooperative maneuvers by Binance.US. The ongoing investigation, marked by rising tensions and heated exchanges, intensified with a lawsuit filed on September 14, highlighting the crypto exchange’s reluctance to comply with regulatory control.
Contested software allegiances: Ceffu in the forefront
The SEC’s concerns multiply as it explores the complex links involving the management of clients’ portfolios and funds orchestrated by Binance Holdings Ltd. through the use of Ceffu, a wallet custodian software. A central point of contention revolves around conflicting statements about the entity actually responsible for providing wallet custodian services to Binance.US. The initial claims attributing it to Ceffu were later replaced by attributions to Binance, a reversal that has sparked concerns about potential violations of preventive agreements against illicit fund transfers abroad.
A besieged pillar: the unfolding crisis at Binance.US
The situation is exacerbated by an internal crisis unfolding at Binance.US. The departure of CEO Brian Shorder marks a blow, leading to a series of resignations, including the head of the legal department and the risk manager, in a matter of days. The escalation of surveillance culminated in a lawsuit initiated by the SEC on June 5, bringing 13 charges against the exchange platform. This encompasses allegations related to unregistered securities offerings and raises questions about the legitimacy of products and services such as Simple Earn, BNB Vault, and its staking program.