Federal Judge Denies SEC Access to Binance Software

Hi NoRamp Community,

Coinbase-incubated Base becomes the 9th largest blockchain (based on TVL), federal judge denies SEC access to Binance software, and SBF’s parents reportedly received $16.8 million in FTX-stolen customer funds

Coinbase’s Base becomes 9th Largest Blockchain:

Pushing Solana to tenth to clinch the ninth spot among all blockchains, Base has gathered deposits worth $370.50 million, while Solana stands at $310.25 million. Among Ethereum's layer-2 platforms, Base ranks third in the value transferred across its system, trailing only Arbitrum and Optimism, as per L2Beat.

Base records the highest daily average transactions per second (TPS) at 15.15, outperforming Ethereum and other layer-2 networks which hover around 11 TPS, according to L2beat figures.

Several factors have driven Base's growth. A notable spike in activity on the Web3 social platform, Friend.tech, combined with the recent integration of esteemed DeFi applications onto the blockchain, played a significant role.

The expansion of recognized Ethereum DeFi platforms to Base, such as Compound Finance, Uniswap, and Stargate, also boosted the surge in deposits.

SEC Setback - Binance Software Protected:

The U.S. Securities and Exchange Commission (SEC) faced a setback when a judge refused its plea to inspect the software behind Binance US, the U.S. subsidiary of the crypto exchange.

During a court session, the SEC sought approval from a federal magistrate judge for a thorough examination of Binance US's technical setup and to compel the firm to provide additional information pertinent to its ongoing litigation against the exchange.

Federal Magistrate Judge Zia Faruqui was not convinced for such an inspection at the current juncture, as reported by Bloomberg. He suggested the SEC refine its demands and consult more witnesses.

This development is a continuation of a legal dispute that initiated in June when the regulatory body filed a lawsuit against Binance US, Binance Holdings, and Binance CEO Changpeng ‘CZ’ Zhao, accusing them of operating an unauthorized exchange. The SEC asserts that the demarcation between Binance US and Binance Holdings is merely superficial, and they allege the mishandling of client funds in contravention of securities regulations.

A particular focus is on Ceffu, a custody platform that underwent rebranding from Binance Custody earlier this year. The SEC speculates it acts as an intermediary between Binance US and Binance Holdings and has been instrumental in relocating U.S. client funds overseas.

The SEC's desire to scrutinize Binance’s software was to discern Ceffu's involvement in the purported unauthorized transactions. While Judge Faruqui declined the current request, it's anticipated that the SEC will continue its efforts.

SBFs Parents Received An Alleged ~$17 million in Customer Funds:

In the latest twist of the unfolding bankruptcy saga, the parents of Sam Bankman-Fried allegedly received $16.8 million from funds misappropriated from FTX customers, as per a recent lawsuit filed by FTX. Furthermore, the founder's parents are said to have been granted property in the Bahamas, valued at an additional $16.4 million, where the exchange had its headquarters.

The insolvent exchange is now taking legal action against the parents of co-founder Sam Bankman-Fried. The lawsuit links Allan Bankman and Barbara Fried to claims of undue influence and strategic maneuvering that purportedly resulted in the substantial capital they obtained from the firm.

FTX's downfall marks a bleak chapter in the annals of the digital asset sector. This debacle has since led to numerous revelations regarding deceptive practices that occurred. With Bankman-Fried's criminal trial scheduled for October, the beleaguered exchange is now targeting his parents in its legal pursuits.

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