Binance CEO Changpeng Zhao played it cool in the hours leading up to the hearing in District of Columbia District Court on Sept. 18, posting a picture of branded merchandise with a cheery message about the company’s interns.
He is likely to pay close attention to the court proceedings, however, as the disagreement between the United States Securities and Exchange Commission (SEC) and Binance.US is at a high pitch after a week of adversarial filings.
Magistrate Judge Zia Faruqui is holding a hearing on the SEC’s motion to compel, which Binance has characterized as “unduly burdensome.” The SEC said that Binance is uncooperative, despite agreeing to a consent order on discovery in the SEC’s case against it for unregistered securities operations and other allegations.
Custody of Binance.US customer assets is one of the big questions being put forward by the regulator. SEC Office of Internet Enforcement chief John Reed Stark noted in an X post that Ceffu acknowledges being legally known as Bifinity in its “Terms of Use” page. Bifinity has been identified as part of Binance Group, Stark added. If that is the case, Binance.US customer assets are in practice custodied by Binance and in danger of being siphoned off, observers add.
SEC Lashes Out At Binance, Threatening To Seek A Contempt Order
The litigation war between the U.S. Securities and Exchange Commission (SEC) and Binance continues to heat up exponentially.
Specifically, thanks to some limited “judicial unsealing,” (albeit amid lots of… pic.twitter.com/QhrifkACL4
Binance.US had agreed that only U.S. staff would have access to customer funds.
The newly unsealed sections of the complaint filed by the SEC auditor against Binance, Binance.US and CZ in June found:
“[It] was difficult and sometimes not possible to pull wallet balances en masse as of a historical point in time. This makes it very difficult to ensure the Company is full[y] collateralized at specific points in time.”
This is a developing story, and further information will be added as it becomes available.
Sir Keir Starmer has talked up the US-UK relationship after a White House meeting with Joe Biden, but questions remain over Ukraine’s use of long-range missiles.
Speaking before the “long and productive” meeting held in the White House on Friday, Sir Keir said the two countries were “strategically aligned” in their attempts to resolve the war.
Afterwards, he skirted around questions regarding Ukraine’s use of long-range missiles, saying: “We’ve had a long and productive discussion on a number of problems, including Ukraine, as you’d expect, the Middle East, and the Indo-Pacific, talking strategically about tactical decisions.
“This isn’t about a particular decision but we’ll obviously pick up again in UNGA (UN General Assembly) in just a few days’ time with a wider group of individuals, but this was a really important invitation from the president to have this level of discussion about those critical issues.”
Decisions loom for Ukraine’s key Western allies as Volodymyr Zelenskyy has recently increased pressure on them to permit his forces to use long-range missiles to strike inside Russian territory.
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However, despite repeated calls for a decision, the West has so far resisted green-lighting the use of the missiles.
Two US officials familiar with the discussions said they believed that Sir Keir was seeking US approval to let Ukraine use British Storm Shadow missiles for expanded strikes into Russia, according to Reuters news agency.
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They added that they believed Mr Biden would be amenable.
The president’s approval would be needed because Storm Shadow components are made in the US.
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1:17
Military analyst Sean Bell looks at how serious Putin’s threats could be
But when speaking to journalists after the meeting, Sir Keir was repeatedly pressed on the long-range missile question but evaded giving a firm decision.
“This wasn’t a meeting about a particular capability. That wasn’t why we got our heads down today,” he said.
The US has been concerned that any step could lead to an escalation in the conflict and has moved cautiously so far, however, there have been reports in recent days that Mr Biden might shift his administration’s policy.
It wasn’t much, but it’s a start
There wasn’t much to say at the end, but it’s a start.
Both sides in these discussions had spent some time playing down expectations and the Americans were insistent their stance wasn’t changing on Ukraine and long-range missiles.
“Nothing to see here” seemed to be the message.
Only, there clearly was – a glance at the headlines gave that the lie.
It’s not every day a Russian president threatens war with the West.
The UK and US were discussing a change in strategy because they must – anything less would be a dereliction of duty for two leaders pledging a commitment to Ukraine’s fight.
Just ask Kyiv’s president Volodymyr Zelenskyy.
Following the meeting, Sir Keir Starmer said they’d talked tactics and strategy.
It will have had missiles, range, and Russian territory at the heart of it.
That is the material change in strategy demanded by Ukraine and supported widely among its backers.
A plan discussed by both sides of the special relationship will now be floated to other, allied nations in an effort to build a coordinated coalition behind a change in strategy.
And they’ll do it against the clock.
There is the unpredictability of the war itself in Ukraine and no less certainty surrounding the political battle at home.
A Trump victory in November’s US election would change the picture – here and there.
Vladimir Putin previously threatened the West, warning that allowing Ukraine to use long-range missiles to strike inside Russian territory would put Moscow “at war” with NATO.
Speaking to Russian state television, he insisted the decision would “significantly change” the nature of the war.
He added: “This will be their direct participation, and this, of course, will significantly change the very essence, the very nature of the conflict.
“This will mean that NATO countries, US, European countries are at war with Russia.
“If this is so, then, bearing in mind the change in the very essence of this conflict, we will make appropriate decisions based on the threats that will be created for us.”
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There remains some scepticism within the US over the impact that allowing Kyiv to unleash long-range missiles would have.
US officials, according to Reuters, have pointed out that Ukraine already has the capability to strike into Russia using drones, and while US missiles would enhance that they are too costly and limited in number to change the overall picture.