A US District Judge has denied the Securities and Exchange Commission (SEC)’s request for an investigation into Binance US, the American branch of the cryptocurrency exchange. The SEC’s request sought access to Binance US’ documents and communications with its custodial service providers. Binance US argued that the request was excessive, and the court agreed, rejecting the SEC’s motion for inspection. However, the court did require Binance US to provide additional documentation and expressed concerns about the exchange’s control over its assets.

What is the SEC investigating Binance US for?

The SEC initiated a lawsuit against Binance US, alleging that the exchange violated a prior agreement by using a custody platform called Ceffu to transfer funds of US customers out of the country. The commission sought access to Binance US’ records and communications with its wallet custody service providers. In response, Binance US argued that the SEC’s request was intrusive and burdensome. The court ultimately rejected the SEC’s request for an investigation but imposed additional documentation requirements on Binance US.

Summary

Binance US, the American branch of the world’s largest cryptocurrency exchange, Binance, has won a significant victory as a US District Judge denied the SEC’s request to investigate the company. The SEC alleged that Binance US violated an agreement by using a custody platform to transfer funds of US customers out of the country. Binance US argued that the request was excessive, and the court agreed. However, the court did require Binance US to provide additional documentation and expressed concerns about the exchange’s control over its assets.

FAQs

Is Binance US the same as Binance?

Binance US is the American branch of Binance, which is the largest cryptocurrency exchange in the world. Although they are related, they are separate entities operating in different jurisdictions.

What was the SEC’s argument against Binance US?

The SEC alleged that Binance US violated a prior agreement by using a custody platform called Ceffu to transfer funds of US customers out of the country. The commission sought access to Binance US’ records and communications with its wallet custody service providers to investigate these allegations.

What did the court decide regarding the SEC’s request?

The court rejected the SEC’s request for an investigation into Binance US. However, the court did require Binance US to provide additional documentation. The court also expressed concerns about the exchange’s ability to maintain control over its assets.

How has the ongoing scrutiny affected Binance US?

The ongoing scrutiny and the SEC’s lawsuit against Binance US have led to a decline in trading volume and the departure of key executives from the company. However, the recent court decision denying the SEC’s request may boost confidence in Binance US.