The U.S. Securities and Exchange Commission (SEC) is currently investigating Binance.US, the American arm of the global cryptocurrency exchange, over concerns about possible undisclosed methods of asset control. This probe comes in the wake of the industry's heightened vigilance following the collapse of competitor FTX, as regulators and investors alike are on alert for any signs of similar misconduct.

The SEC's investigation, which has been underway since June, initially targeted Binance for allegedly operating an illegal securities exchange. The recent troubles for Binance.US have been compounded by an admission from CEO Changpeng Zhao, who acknowledged shortcomings in the exchange's anti-money laundering (AML) measures and compliance with sanctions laws. Despite these admissions, the Justice Department has not charged Binance.US or its executives with misappropriation of client funds.

The SEC's increased scrutiny of Binance.US signals a broader push by regulators to ensure cryptocurrency platforms operate within legal and regulatory frameworks, especially concerning the safeguarding of client assets. The outcome of the SEC's investigation into Binance.US could have significant implications for the cryptocurrency industry, particularly on how exchanges manage and control their customers' assets.

https://www.investing.com/news/cryptocurrency-news/binanceus-faces-sec-scrutiny-over-asset-control-methods-93CH-3245078