The SEC has called for an audit of Binance US, citing the company’s slow response in producing necessary documents. The commission’s main concern lies with the lack of evidence to suggest that Binance US is “fully collateralized” at certain points in time, raising important questions about its financial reliability and transparency.
BAM’s Non-Responsiveness
According to a report by The Block, the SEC has requested various pieces of information related to customer assets from Binance US. However, BAM Trading Services, the company operating Binance US, has yet to respond. The SEC alleges that BAM is downplaying the necessity of document production related to the control of customer assets and is dismissing ongoing concerns as mere “noise.”
This charge comes just ahead of a court hearing related to Binance in the U.S. District Court for the District of Columbia. The SEC is demanding a thorough review of Binance US. It also claims that the company has hindered the release of documents related to the storage of customer assets. Furthermore, the SEC suggests that BAM’s technological infrastructure and software also warrant scrutiny.
