- Binance.US has witnessed a crash in trading volumes to $2.97 million after legal battles with the SEC.
- SEC accuses Binance.US of noncooperation and links to crypto custody firm, Ceffu.
Trading activity on Binance.US reached $2.97 million in September due to legal struggles between the exchange and SEC. The trading volume is a significant fall from $230 million in the same period of 2022.
The woes heightened as the SEC accused Binance.US’s holding company, BAM, of noncooperation in the ongoing legal tussle. The lawsuit, filed on June 5, accuses Binance of 13 charges. The charges include unregistered security offerings, Binance’s staking program, the Simple Earn, and BNB Vault Products.
SEC says BAM has produced only 220 documents in light of the claims. The regulator adds that many documents “consist of unintelligible screenshots and documents without dates or signatures.
The US watchdog also accuses Binance of failing to produce crucial witnesses for the deposition. Binance is said to have agreed to produce only four depositions of witnesses, which SEC argues was unilaterally determined by the exchange.
SEC Questions Binance.US Links To Ceffu
Meanwhile, crypto custodian Ceffu has distanced itself from Binance and its operations in the US. This is after regulators raised concerns about a breach of the agreement by Binance.US over its relationship with the crypto custody firm.
The regulators want to know if the crypto exchange gave a foreign entity control of US customer assets. According to the SEC, Binance.US’s use of Ceffu amounts to a breach of a legal agreement. The agreement provided that only local American staff could access the customer funds.
Binance has defended itself, saying Ceffu is just a market name of a wallet custody software. The wallet has no control over customers’ money. The exchange says Binance Holdings developed the software and licensed it to Binance.US.
Ceffu was launched as Binance Custody in December 2021. It was rebranded with a new logo, distinct from Binance, in February 2023. A key question now before the court is whether Binance.US is a client of Ceffu or not.
