Despite the CEO’s departure and the $4 billion settlement, Binance is still under investigation by the SEC for customer asset control; the court has ordered a conclusion by December 15th.
A Wall Street Journal story from November 27 states that the US Securities and Exchange Commission (SEC) is continuing its investigation into BinanceUS to determine if the exchange, like FTX, has unlawful influence over client funds, even after Binance’s CEO resigned and the exchange was fined $4 billion.
The Securities and Exchange Commission (SEC) charged Binance and BinanceUS with fraud and law violations in addition to selling unregistered securities in a June lawsuit. According to the SEC, BinanceUS may have spent or transferred client cash illegally.
BinanceUS’s legal team resisted the SEC’s inquiry, claiming in court that their client had not misappropriated any funds and asking the court to halt the probe since it was wasting the funds. Binance has been significantly impacted by the case. Both the US economy and its user base have seen precipitous declines as a result of the probe.
The $4.3 billion settlement that Binance and its CEO recently reached for breaking anti-money laundering regulations does not address the SEC’s allegations of fraud.
Judgment in the case has been handed down by Judge Faruqui, who considers the likelihood of Binance misusing client cash is minimal and has requested that BinanceUS and the SEC settle their disagreement by December 15th.
United States authorities are concerned that Binance CEO CZ may not return to the country for his punishment if he leaves the country, therefore he is waiting for a court judgment about his travel. Until a government motion is reviewed, the CEO is not allowed to return to the UAE. A maximum of 18 months behind bars is possible for him.
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