The US Securities and Exchange Commission (SEC) has asked the court to dismiss subsidiary Binance.US's objections to its request for additional review.
This was reported by Coindesk with reference to court materials.
In its statement, the regulator claims that the firm has not submitted necessary documents requested by the regulator during the ongoing legal proceedings. He accused Binance of being “inconsistent on key facts, slow in providing documents and information, and blocking entire categories of data.”
“We seek an order compelling Binance.US to provide access to documents and communications relating to any entity that provides it with wallet software and related services,” the SEC said in its filing.
The supervisor believes that Ceffu's custodial platform may serve Binance.US and therefore be used to withdraw funds from US clients. In turn, Ceffu representatives said that the firm is a “completely independent third-party technology services provider” and not part of Binance.
As a result of the meeting, Magistrate Zia Faruqi suggested that the SEC prepare more specific requests and called on both parties to work together.
The filing says the judge suggested the SEC narrow its request for more information. However, he allowed the regulator to determine whether the funds of Binance.US clients are safe. The cryptocurrency exchange should share more information about its relationship with the service provider, he said.
The judge set the deadline for filing a joint status report at Oct. 10 and a subsequent hearing at Oct. 12.
