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SEC Continues Investigation for Possible FTX-Style Fraud at Binance US

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The United States Securities and Exchange Commission (SEC) is reportedly investigating Binance.US for potential control over customer assets through a backdoor mechanism, similar to the FTX model. The SEC had previously filed a lawsuit in June, accusing Binance and [Binance.US]( of engaging in the sale of unregistered securities and alleging a complex conspiracy involving fraud, conflicts of interest, lack of disclosure, and disregard for the law. One specific claim was the diversion of customer assets, including funds sent to Sigma Chain in Switzerland under Zhao's control. During a recent federal court hearing, [Binance.US]( attorneys argued that the SEC lacks evidence of asset misuse and requested the cessation of the regulator's investigation into potential fraud.