Binance.US Faces Accusations of Non-Cooperation in SEC Investigation


September 16, 2023


Iara Kaiser

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According to a court filing submitted by the SEC, Binance.US’s holding company, BAM, is under fire for what the SEC believes is a lack of cooperation in their investigation. The regulatory agency claims that BAM has only provided 220 documents during the discovery process, many of which are described as illegible screenshots that are difficult to read or lack proper dates and signatures. Moreover, BAM has been accused of refusing to produce essential witnesses for deposition and have only agreed to four witnesses that they deem suitable.

Another point of contention highlighted by the SEC is Binance.US’s unwillingness to hand over communications. The exchange has allegedly responded to requests for these communications with blanket objections and declined to provide necessary documentation.

The legal battle between the SEC and Binance.US dates back to June, when the SEC filed a lawsuit against the cryptocurrency exchange. The SEC has levied charges against, Binance.US and BAM Trading, including allegations of unregistered securities and improper handling of staked Ethereum. The SEC’s argument is centered around the claim that these entities should have registered as clearing agencies, broker-dealers, and exchanges, respectively.

In the midst of this legal turmoil, Binance.US witnessed a shakeup in its leadership. The CEO of Binance.US Brian Shroder, stepped down on Wednesday, followed by resignations from the head of legal and the chief risk officer. Despite these developments, the exchange has remained silent about these personnel shifts and has not yet responded to the SECs allegations.

The outcome of this ongoing legal battle may have profound implications for the  cryptocurrency industry in the United States and beyond. As both parties continue their back and forth, members of the cryptocurrency community will be closely monitoring any developments that may shape the regulatory landscape for digital assets in the future.