US SEC Continues To Investigate Binance Despite Recent Charges
Binance faces ongoing SEC probe over customer asset control despite CEO's exit and $4B settlement, with court urging resolution by Dec. 15.
Despite Binance's CEO stepping down and a $4 Billion settlement charge against the exchange, The US Securities and Exchange Commission (SEC) is still investigating to know if BinanceUS had unauthorized control over customer assets, just as FTX did, as per a Wall Street Journal report on Nov. 27.
In June, the SEC sued Binance and BinanceUS, claiming that these companies were involved in the sales of unregistered securities and accusing them of fraud and violating some laws. The SEC claims BinanceUS may have unlawfully moved or spent customer funds.
BinanceUS's lawyers fought back, arguing in court that there was no evidence of misused assets, and requested to stop the SEC's investigation, as it was costing them too much. The lawsuit has really affected Binance.US's finances and its user base has dropped massively amid the investigation.
Binance and its CEO recently pleaded guilty to violating anti-money laundering laws in a $4.3 billion settlement, but the agreement doesn't cover the SEC's fraud claims.
The Judge in charge of the case, Judge Faruqui, has suggested that BinanceUS and SEC resolve their dispute by Dec. 15, he believes there is a low chance that Binance misused customers' funds.
Binance CEO CZ is awaiting a court decision on his travel as US prosecutors believe if he leaves the US he may not return to the US for his sentencing. The CEO has been barred from returning to the UAE until a review of a government motion is complete. He could face up to 18 months in prison.
