Former Binance.US CEO Catherine Coley, transparently known as “BAM CEO A” in the lawsuit against Binance filed by the United States Securities and Exchange Commission (SEC) on June 5, has kept a low profile since her inception. Exit from the exchange. However, she testified before the SEC in 2022 when the SEC was investigating the company for insider trading.
That testimony has reappeared as evidence in the new SEC case against the cryptocurrency exchange. Coley’s 2022 testimony was apparently quite long, as the picks he constitute exhibit 86 in the case have page numbers ranging from 135 to 336. Those passages primarily refer to the separation of Binance and Binance.US, which was the subject of significant allegations in the SEC lawsuit.
Coley was the CEO of Binance.US from its founding in 2019 until her resignation in 2021. As recounted in the SEC’s complaint, Binance CEO Changpeng Zhao, also known as “CZ”, was involved in hiring Coley. , but quickly became frustrated by Binance.US’s lack of independence. The lawsuit quotes her in 2022 testimony:
“I wanted full independence from everything, but that wouldn’t necessarily be possible nor would it be at the time, given our reliance on some of those components. [en cuatro acuerdos de nivel de servicio con Binance.com].”
The service level agreements between Binance and Binance.US were a master service agreement, a wallet custody agreement, a software license agreement, and a trademark agreement.
Catherine Coley has entered the chat https://t.co/zgTZEqY9Nn
— DIRTY BUBBLE MEDIA: GRIND SLOW, GRIND FINE (@MikeBurgersburg) June 7, 2023
The custody deal particularly irritated Coley, who stated in 2022: “The wallet and custody was something I wanted to have at least US involvement in so that we would have control over holding the tokens.” Various business data was covered by the agreements. “I wanted custody of the data and the ability to interact with the raw data in real time,” she said.
The lawsuit cites Coley from internal communications in addition to testimony from 2022. These include his references to Binance.US’s efforts to receive more independence as “Project 1776” and a blunt interaction about wash trading.
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