Hello friends, lately there has been resignation from an important position at Binance due to investigations by the SEC. Today it was the turn of the departure of strategy director Patrick Hillman, Binance's director of strategy, he left the company. Personal reasons for his departure were mentioned, such as tiredness and need for personal time.
Also the SEO (Chief Executive Officer) also left Binance after 7 years with the company. This occurred alongside a 33% cut in the workforce at Binance US due to an SEC investigation into the reasons behind the mass exodus within Binance.
The curious thing is the departure of Patrick Hillman although it was justified for personal reasons. I find it striking that such important positions are leaving the company during this stage of investigation by the SEC. It is true that the company itself mentioned that it would cut 33% of its staff, but normally those affected are ordinary employees who have high positions.
On the other hand, the SEC has generated a new complaint where the SEC claims that Binance has not complied with a previous agreement and is playing with the regulations. One of the key points is that Binance US continues to rely on an international provider for custody, which violates the previous agreement. The main concern is that assets could move abroad and go out of regulatory reach.
The SEC has concerns about the commingling of funds between companies related to CZ (Changpeng Zhao), including crypto funds on Binance US and Binance Global. The continued reliance on an international provider for custody means that US client funds may be managed by a foreign institution, which is a concern for the SEC. He has also expressed dissatisfaction with the collection of evidence provided by Binance United States, claiming that they have only presented around 220 documents that lack dates and signatures. This raises questions about whether the defendants are violating the consent order.
Binance's US holding company, known as Bang, has provided approximately 220 documents in a legislative process. The documents consist of intelligible screenshots and documents without dates or signatures. So the SEC is not satisfied with the evidence presented by Binance and questions whether they are complying with the consent order.
Regulatory pressure and limited discovery |
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Regulatory pressure on Binance continues as the SEC seeks more compliance in the investigation. The limited discovery so far raises questions about whether the defendants are violating the consent order. Binance claims to be providing all the information requested by the SEC. Possible improper commingling of funds and reputational consequences and if it is proven that there has been improper commingling of funds on Binance, this could have serious reputational consequences and affect the BNB coin.
In conclusion |
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The possible existence of improper commingling of funds on Binance is an important aspect of the investigation. If this improper mixing is proven, it could have a negative impact on the reputation of Binance and the BNB coin. Improper movement of capital to unauthorized locations would be a serious problem for Binance's reputation.
Regulatory pressure may be leading to changes in key personnel within Binance. So the SEC may prefer new executives who are not familiar with internal details to avoid possible concealment or favoritism towards the company. Therefore, current executives could know many aspects and details that could be harmful if they tried to hide information or act in favor of the company. We still do not know this in detail. At the moment we have to wait and see what happens with the soap opera that has been set up. Binance and the SEC.
| Source of the information: |
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https://www.diariobitcoin.com/mercados/exchanges/ceo-de-binance-us-renuncia-en-medio-de-despidos/
https://cointelegraph.com/news/binanceus-exchange-volume-slumps-amidst-crisis
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Link Twitter
https://twitter.com/joel_jai1/status/1703612649710260568
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Dear @joeljaimes1982 ,
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It indeed is suspicious to see users with reputable posts resign from binance, however, let's allow the SEC to do their job and make all necessary corrections
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