In a Monday court filing, the Securities and Exchange Commission laid into what it says is Binance.US’s "slow-rolled small productions of documents” and called for the court to order an inspection of the firm. 

The regulator asked for certain information around customer assets, but said BAM, the company behind Binance.US, has so far not obliged. 

"BAM insists that this Court, like the SEC, should accept packaged counsel narratives, carefully drafted declarations, and small curated sets of documents regarding control of BAM's customers' assets, and that any lingering concerns are 'much ado about nothing,'" the SEC said in the filing. 

The accusations came hours ahead of a hearing in the U.S. District Court for the District of Columbia, months after the SEC sued the exchange and its founder Changpeng "CZ" Zhao for violating multiple federal securities laws. 

The agency called for an inspection and said that BAM "stonewalled on entire categories of information that would likely shed light on its shaky assertions concerning the custody of customer assets."

The SEC said it wants an inspection of BAM's technological infrastructure and software, among other areas. 

"The limited inspection the SEC has been able to conduct so far demonstrates the urgent need for an inspection," the agency said. 

'Mass exodus'

The SEC also commented on a few notable executives who departed Binance.US, including its CEO Brian Shroder. Krishna Juvvadi, head of legal, and Sidney Majalya, chief risk officer, at Binance.US also left last week, according to The Wall Street Journal. 

"The accelerating mass exodus of BAM employees, now including its CEO and others who may possess crucial information regarding the custody, control, and availability of assets, further underscores the urgent need for expedited discovery into these issues now," the agency said. 

source:theblock