SEC vs. Binance: SEC Investigation Uncovers Binance US’s Troubling Predicament

The post SEC vs. Binance: SEC Investigation Uncovers Binance US’s Troubling Predicament appeared first on Coinpedia Fintech News

Crypto influencer Adam Cochran has offered critical observations regarding the rebranded Binance Custody, now known as Ceffu. He alleges that Binance US’s custodian is essentially an extension of Binance International and accuses them of being dishonest in their dealings with the courts.

1/3

Damn.

Even around the redacted part this is juicy. External auditor making redacted testimony, Binance US failing to produce, all focused on Ceffu.

Seems the SEC may have already pointed out what I did in my earlier thread pic.twitter.com/UGnUKSdJIQ

— Adam Cochran (adamscochran.eth) (@adamscochran) September 15, 2023

In a series of tweets, Cochran further emphasizes that Binance US is relatively small, suggesting that auditors should have no trouble scrutinizing their financial records. He goes on to express concern, stating that if they cannot maintain accurate financial records domestically, it raises questions about the potential chaos in their international operations.

One of the most striking points made in Cochran’s tweets is the reference to “auditor concerns.” In an industry where trust is of utmost importance, financial institutions strive to avoid any signals of concern from their auditors. Cochran underscores the seriousness of these concerns, describing them as the last thing any organization wants to encounter, particularly when navigating the turbulent waters of regulatory scrutiny.

Recent developments have seen the departure of CEO Brian Shroder and two key executives, Krishna Juvvadi, Head of Legal, and Sidney Majalya, the Chief Risk Officer, from Binance US. These departures not only raise questions about Binance’s stability but also reflect broader trends in the crypto industry, where senior figures are choosing to distance themselves due to increased regulatory scrutiny.

Binance’s Defensive Plan

In response to these challenges, Binance US has initiated a multi-faceted strategy, including significant layoffs and the sale of shares owned by co-founder Changpeng Zhao (CZ). Despite these measures aimed at ensuring sustainability, the exchange has yet to comment on the recent wave of executive departures.

If Binance faces closure, it could lead to a sharp decline in the prices of Bitcoin and other cryptocurrencies, triggering widespread market panic. Given Binance’s substantial role in global crypto trading, a shutdown would result in a “supply shock,” severely disrupting market dynamics.