SEC: Binance.US is refusing to cooperate with investigators

The US Securities and Exchange Commission (SEC) has complained about the lack of cooperation from Binance.US, the regulated crypto exchange arm of Binance.

Per a court filing by the regulator, Binance.US has not fully cooperated as expected in an investigation the agency is conducting regarding investor safety and protection.

SEC seeks court's help

SEC says in documents filed at the United States District Court for the District of Columbia that it's “good faith attempts” to get needed information from the defendants have been largely unsuccessful. In the regulator's words, Binance.US has refused to comply with the consent order agreed with at the court on June 17, 2023.

Per the order, the defendants agreed to avail “expedited discovery and other relief relating to the custody, security, and availability” of the assets of US customers. In its complaint, the SEC claims nothing has essentially changed from when it first applied for the court’s relief.

The SEC’s filing reads in part:

According to the regulator, Binance.US needs to provide the information and other critical assurances that its customers’ assets “are not at the mercy” of the parent company Binance and its CEO Changpeng Zhao.

The SEC filed a lawsuit against Binance in June. Meanwhile, yesterday’s filing comes at a time Binance and Binance.US have both seen a series of exits of top officials. These includes Binance.US CEO Brian Shroder and Head of Legal, Krishna Juvvadi.