BinanceUS Files Motion In Response To Earlier Deal With SEC

BinanceUS, the US-based arm of the world’s largest crypto exchange Binance, has filed a motion in the court for an extension of the deadline to submit a verified financial statement. Binance and Binance.US earlier agreed with the US SEC to separate their wallets and teams, as well as share a detailed financial report with the government agency.

BinanceUS to Delay Financial Reporting to the US SEC

Binance.US filed a motion for an extension of time to submit verified accounting details to the US SEC, according to a filing in the District Court for the District of Columbia.

According to a consent order signed by Judge Amy Jackson in June, BAM Management US Holdings and BAM Treading Services are ordered to share a detailed financial statement. It includes records of business expenses and estimated costs from December 1, 2022 to the date of the accounting, with the US SEC in the next few weeks.

Binance believes the regulatory action in the US is mainly to target the crypto exchange and its entities. Also, accounting firms are reluctant to work with crypto firms amid intense scrutiny from regulators, especially after the FTX crisis.

As CoinGape Media reported, the proposed agreement allows only Binance.US employees to access customer funds on the US-based crypto exchange. Binance Global officials are restricted from having access to private keys of all wallets including cold and hot wallets, hardware and software, as well as Binance.US’s internal systems and controls within 14 days.

Also Read: SEC’s Crypto Conflict Details Surface, Exposing Bias Against Ripple (XRP)

Significance of Judge Torres’ Ripple Ruling in Binance Lawsuit

Judge Torres’ summary judgment ruling in US SEC v. Ripple Labs is a landmark decision for the crypto industry and enforcement actions by US SEC. Interestingly, Coinbase also looks to file a motion to dismiss the SEC lawsuit, which is mostly similar to the lawsuit against Binance.

Binance has filed a motion to dismiss the US CFTC lawsuit, claiming that it lacks jurisdiction on the global crypto exchange. The response by the CFTC is due on September 22.

Meanwhile, Judge Jackson seems to consider Judge Torres’ Ripple ruling in the BinanceUS lawsuit after Judge Rakoff rejects the ruling in the US SEC v Terraform Labs lawsuit.

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Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

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