The US Securities and Exchange Commission (SEC) has submitted a fresh motion for an enforcement action against Binance. US Holdings BAM, asserting that wallet provider Ceffu is, indeed, "linked to Binance." This contradicts Binance's previous claims made in early court filings .
The newly filed, redacted document underscores the SEC's stance that Binance's request for a protective order in response to the SEC's investigation holds no merit. Consequently, the SEC has called upon the court to reject Binance's request. Binance had originally filed this request in the US District Court for the District of Columbia on August 14, characterizing the SEC's investigation as a "fishing expedition." In its latest filing, the SEC describes Binance's response to its June lawsuit as a "house of mirrors."
In a memo submitted to the court on September 14, the SEC raised questions about Ceffu, contending that the company, which changed its name from Binance in March, "appears to have control over customer assets." The SEC filing on September 18 also reveals that BAM, which claims that Binance is merely "a third-party provider of wallet software services similar to BAM's internet service provider," cannot be relied upon to understand how it operates. The SEC countered this by stating that Binance and BAM are jointly owned by another defendant in the lawsuit, who believes they are beyond the jurisdiction of any court.
The individual referred to is seemingly Binance CEO Bian Zhao. Additionally, the SEC is seeking testimony from former Binance.US CEO Brian Shroder and CFO Jasmine Lee. Binance.US argued that their testimony would disrupt BAM's business. It was reported on September 13 that Schroeder was leaving the company, along with a significant number of layoffs.
Binance's repeated attempts to have the courts limit the SEC's investigation have led to multiple court filings. A hearing scheduled for the afternoon of September 18 in Washington, DC, may provide resolution to this matter.
