SEC increases pressure on Binance

Binance, the world's largest crypto exchange, is under investigation in the US. The dispute is now intensifying. What does the SEC want?

As part of the investigation against Binance.US expressed the SEC's concerns over the crypto exchange's compliance with disclosure requirements. As a result, Binance's U.S. subsidiary, BAM Trading Services, is coming under further pressure.

The SEC is also investigating the influence of Binance employees outside the US on the funds of U.S. customers. An order from Judge Amy Berman Jackson forces Binance.US to demonstrate control over customers' funds.

However, according to the SEC, it has encountered obstacles in obtaining comprehensive information from Binance. This could indicate that staff at the crypto exchange are unwilling or unable to comply with requests for information.

In response to the SEC's allegations, Binance.US vigorously defended its compliance efforts. The company emphasized its cooperation in responding to official requests for documents.

While the SEC's investigation continues, last year's attempt to force Binance.US to cease operations via a temporary restraining order (TRO) has already left lasting damage to the crypto exchange.

There was a significant outflow of assets totaling about a billion US dollars. As a result, revenue fell 75 percent and Binance.US had to lay off two-thirds of its staff.

Binance itself managed to settle much of its legal disputes with the U.S. Justice Department late last year through a record $4.3 billion fine to be paid. However, the lawsuit with the SEC is still pending.

Binance founder and former CEO Changpeng "CZ" Zhao now faces a prison sentence in the US. He is predicted to be sentenced in late April.