Binance.US Rejects SEC’s Requests for Depositions and Further Discovery
Binance.US (BAM) has responded to the Securities and Exchange Commission’s (SEC) demands for depositions and further discovery, calling them “unreasonable.” The response was filed on September 12, stating that the requests from the SEC were burdensome and freewheeling.
BAM emphasized that there is no evidence to support the SEC’s allegations that investor assets have been diverted. The company maintains that it has full custody and control of its digital assets, as evidenced by documents, declarations, and sworn deposition testimony.
The SEC had previously accused Binance founder Changpeng Zhao and others of diverting billions of dollars of customer funds through intermediary companies. The allegations were based on testimony from an SEC accountant.
Binance.US Offers Alternative Executives for Depositions
In its response, Binance.US also argued that the SEC’s requests were too broad and went beyond the scope of an earlier consent order. The lawyers stated that there was no evidence implicating CEO Brian Shroder and CFO Jasmine Lee in the daily management of customer assets and their transfer or custody.
Furthermore, Binance.US offered several other executives, such as Erik Kellogg, the company’s chief information security officer, who have relevant knowledge of the operations. The lawyers pointed out that Shroder and Lee do not possess unique knowledge on the relevant topic.
Hot Take: Binance.US Challenges SEC’s Demands
Binance.US is pushing back against the SEC’s requests for depositions and further discovery, claiming that they are unreasonable and burdensome. The company asserts that it has custody and control of its digital assets, refuting the SEC’s allegations of diversion. Binance.US argues that the SEC has provided no evidence to support its claims.
Additionally, Binance.US offers alternative executives with relevant knowledge for depositions, highlighting that CEO Brian Shroder and CFO Jasmine Lee are not directly involved in the daily management of customer assets. The company believes that the SEC’s requests go beyond the scope of the consent order and are overly broad.
By
By
By
By