SEC Investigates Binance Over Control of Customer Assets; Tightens U.S. Investor Restrictions

The U.S. Securities and Exchange Commission (SEC) is investigating Binance Holdings Limited and its affiliates, including CEO Zhao, for potential issues related to the custody and control of customer assets on BinanceUS, specifically questioning "whether Binance Holdings Limited (’BHL’), Zhao, or any of their affiliated entities have any custody, control, or the ability to transfer BAM’s Customer Assets." Concurrently, Binance has directed prime brokers to implement more rigorous verification processes to exclude U.S. investors from its cryptocurrency exchange. This includes demanding additional customer information such as office addresses and the locations of employees and founders from firms like FalconX and Hidden Road.