The US Securities and Exchange Commission (SEC) recently unsealed documents in a legal case against Binance US, a brokerage firm based in New York. The documents were unsealed after the firm successfully sought the court’s permission to publicly disclose the information.
The documents provide further details of the allegations against the firm. It was alleged that Binance US deliberately deceived investors by using deceptive language to describe its services and made false statements about its “fee-free enterprise.” The reports also provide an overview of how the company operated, including its affiliates, activities and offers, as well as its failures to obtain necessary regulatory authorizations.
The SEC has also raised concerns about the platform’s failure to maintain proper books and records and its allegedly inadequate AML program. The reports further indicate that Binance US failed to register as an independent broker-dealer with the SEC and seek a compliant money transmitter license in the US.
The SEC has ordered Binance US to register with the SEC as a broker-dealer, and to submit a registration application for a compliant money transmitter license. The company has agreed to comply with the agency’s demands. This case demonstrates the importance of registering with the SEC as a broker-dealer and complying with money transmission laws.