In a recent development, Binance’s U.S. subsidiary, Binance.US, has strongly contested the claims made by the Securities and Exchange Commission (SEC) regarding the mishandling of user funds. In a motion filed on Wednesday, the exchange called the SEC’s allegations “misleading” and pointed to contradictory statements from the regulatory body itself.

The SEC’s Conflicting Statements

Binance.US presented screenshots from a filing that revealed a conversation between the SEC and the court, wherein the agency was pressed to provide a clear answer regarding the transfer of Binance.US assets offshore. Surprisingly, the SEC responded by stating that the assets were not currently being moved outside the United States, further adding that they had not observed any outflows of money abroad.

This conversation took place in relation to the SEC’s request for an immediate freeze on Binance.US assets earlier this month. The SEC was concerned that these assets were being dissipated internationally. However, the judge overseeing the case denied this request and instructed both parties to negotiate a deal that would allow Binance.US to continue its business operations while ensuring the assets remained within the country.

Contradictions and Marketplace Confusion

In its filing, Binance.US highlighted the contradiction between the SEC’s claim that Binance and Binance.US “commingled” user assets and diverted them at will, and the SEC’s own statement to the court, denying any evidence of such occurrences. Binance.US strongly asserted that the SEC’s allegations were directly contradicted by its own admissions.

Moreover, Binance.US expressed concern that the SEC’s comments risked causing unwarranted confusion in the marketplace, potentially harming its customers. The exchange further stated that these claims could “taint the jury pool” by disseminating inaccurate information about the evidence against Binance.US.

Potential Impact on the Market

If Binance’s motion is approved, it could prevent the SEC from making certain public statements that may affect the market. Binance.US argued that the SEC’s comments had already played a role in the recent slide of the cryptocurrency market when the agency announced its cases against Binance and Coinbase. Coins specifically mentioned in the lawsuits as allegedly illegally traded securities, such as BNB, Cardano (ADA), and Solana (SOL), experienced significant declines.

Despite being allowed to continue its operations, Binance.US has already faced repercussions from the lawsuit. The exchange was forced to implement job cuts, impacting around 50 employees. Additionally, several banking partners severed ties with Binance.US, leading to the suspension of US dollar deposits for its customers.

In conclusion, Binance.US is actively refuting the SEC’s claims about mishandling user funds, emphasizing the contradictory statements made by the regulatory body. The exchange argues that the SEC’s allegations are misleading and risk creating confusion in the marketplace. The outcome of this legal battle will have significant implications for both Binance.US and the wider cryptocurrency industry.

The post Binance.US Refutes SEC Claims About Mishandling User Funds appeared first on Crypto Academy.

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Filed under: Bitcoin - @ June 23, 2023 4:33 am