The SEC recently unsealed documents connected to its legal case against Binance US. According to an SEC filing, these documents reveal that Binance US allegedly failed to register as a national securities exchange or broker-dealer when it started offering digital asset securities to retail investors in 2019 and 2020. Furthermore, the documents allege that Binance US deliberately misled its customers about the legal status of its services.
The documents also suggest that Binance US didn’t always comply with its own stated policies, such as its anti-money laundering (AML) and customer identification program (CIP) policies. Specifically, it’s alleged that Binance US didn’t always carry out the proper due diligence or enforce its AML and CIP policies.
Finally, the documents allege that Binance US may have been operating unlawfully since at least September 2019.
In response to these allegations, Binance US has sought to defend itself saying that it’s always operated within the bounds of the law. It has also pointed to its compliance with various other legal requirements, such as those imposed by the Bank Secrecy Act (BSA).
The unsealed documents will now be reviewed by a court in order to determine the extent of Binance US’s legal liability. If Binance US is found guilty of the violations alleged in the documents, it could face substantial fines, as well as potential criminal penalties.