The regulatory body responsible for overseeing securities affirms that “Ceffu” functions not solely as a digital asset wallet provider but instead operates as an entity connected to Binance.
The United States Securities and Exchange Commission (SEC) has recently submitted a motion to compete against BAM, the parent company of Binance.US. Moreover, in their submission, the SEC confidently asserts that Ceffu, the wallet provider, is undeniably linked to Binance. This contradicts Binance’s previous claims made in court documents.
The censored document emphasizes that Binance’s plea for a protective order against the SEC investigation lacks merit. It urges the court to reject this request. On Aug 14, Binance submitted the request to the District of Columbia District Court, describing the SEC investigation as a “fishing expedition.” In its latest submission, the SEC criticized Binance’s response to their June lawsuit as “a complex web of smoke and mirrors.”
The Securities and Exchange Commission (SEC) raised concerns in a memorandum filed on Sept 14. They expressed their worries about Ceffu, previously known as Binance, before its rebranding in March. The SEC highlighted that the company seems to have control over Customer Assets.
Additionally, the SEC replied to Binance’s uncooperative stance in an official filing on Sept 18. However, the SEC emphasized the need for a comprehensive inspection based on its limited examination thus far. As such, they request the court’s intervention in enforcing the inspection outlined in their Motion to Compel.
Binance CEO Zhao Entangled In SEC Lawsuit Over BAM Connection
According to the filing submitted by the SEC on Sept 18, it was mentioned that BAM has asserted Binance is simply a third-party vendor providing wallet software services similar to BAM’s internet service provider. BAM argues that Binance should not be held responsible for comprehending its operations. However, the SEC presented a counterargument.
“Contrary to being a benign service provider, the connection between Binance and BAM goes deeper as they share a common owner who, as a defendant in this legal proceeding, perceives himself as exempt from the jurisdiction of any court.”
The person in question is Changpeng Zhao, the CEO of Binance.
The Securities and Exchange Commission (SEC) is currently seeking depositions from Brian Shroder, former CEO of Binance.US, as well as Jasmine Lee, the chief financial officer. Binance.US has expressed concerns that such testimonies might impede their business operations.
However, Binance’s attempts to limit the SEC’s investigative actions have resulted in a series of legal filings and counter-filings. Anticipating an afternoon hearing on September 18, according to the local Washington Times, will resolve this matter.
Related Reading | Web3 Innovation Arrives In Southeast Asia As Grab Teams Up With Circle
“The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.”
Comments (No)