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Binance.US, the American arm of the global cryptocurrency exchange giant Binance, has been accused of non-cooperation in an ongoing probe by the US Securities Exchange Commission (SEC).

The SEC has alleged that Binance.US's staking, clearing, and brokerage services violate federal securities law.

In a court filing released Thursday, SEC has targeted Binance.US's use of Ceffu, a custody service provided by Binance Holdings Ltd, the international arm of the Binance empire.

U.S. regulators are concerned that this use of Ceffu custody may breach a previous agreement designed to prevent assets from being moved overseas.

The SEC also voiced its concerns about Binance.US's handling of the probe in the court filing.

The regulatory agency claimed that the company's holding entity, known as BAM, had provided a limited and inadequate amount of evidence during the discovery process.

According to the SEC, BAM had furnished only around 220 documents, many of which were described as "unintelligible screenshots'' and lacked dates or signatures.

The SEC's contention is that this limited cooperation from BAM raises questions about whether the company is violating the terms of the earlier consent order.

This order was established to ensure that only local U.S. staff have access to customer funds, a crucial safeguard in the realm of cryptocurrency exchanges.

Binance.US has pushed back against the SEC's allegations.

In a filing dated September 12, the company dismissed the regulator's concerns over Ceffu as "much ado about nothing."

Binance.US also characterized the SEC's demand for additional documents as a "futile fishing expedition."

The cryptocurrency exchange argued that merely providing the Ceffu software for wallet creation does not imply that its international arm has custody or access to customer funds.

Amidst these regulatory challenges, Binance.US recently announced a significant workforce reduction, shedding one-third of its employees.

Among those departing are Chief Executive Officer Brian Shroder, as well as the company's head of legal and chief risk officer.

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SEC Accuses Binance.US of Non-Cooperation in Probe Over ... - Cryptonews