The S.E.C. shared new details about how Binance’s accounts at Signature Bank and Silvergate Bank were used to move customer funds quickly through a web of foreign companies.
The regulator said that the cryptocurrency trading platform allowed users to trade unregistered securities, a day after it accused the crypto platform Binance of mishandling funds.
The S.E.C. said the world’s largest cryptocurrency exchange mixed billions of dollars in customer funds and secretly sent them to a separate company controlled by Binance’s founder, Changpeng Zhao.
Prosecutors investigating Sam Bankman-Fried, the cryptocurrency exchange’s founder, have accumulated more than six million pages of documents and other records.
The FTX founder, who has been charged with fraud, said the crypto exchange and its law firm had been acting against him and offering only the most incriminating evidence to prosecutors.