SEC Strengthens Position Against Binance Due to Non-Cooperation
According to John Reed Stark, the former US SEC enforcement chief, the SEC’s case against Binance has been bolstered by the platform’s alleged non-cooperation. Binance’s reluctance to fully comply with the SEC’s demands has given the regulator an advantage, especially in obtaining depositions from Binance.US executives. As a crucial hearing approaches, the scales seem to tip in favor of the SEC due to the oversight provided by the judicial system.
Binance May Resolve Legal Issues Faster than Coinbase
In contrast to popular belief, Binance might reach a resolution faster than Coinbase. The key factor is the presence of fraud allegations against Binance. Stark points out that auditors have disclosed more information about Binance than the platform itself. This disclosure is likely to lead to increased scrutiny from the SEC.
The SEC has expressed dissatisfaction with Binance’s documentation, accusing the exchange of falling short in its commitments. Although around 220 documents were submitted by BAM, Binance’s US affiliate, they were deemed insufficient by the SEC. These documents allegedly included difficult-to-understand screenshots and lacked essential signatures or dates.
Issue at Play: Binance’s Non-Disclosure and Selective Witnesses
Another aspect of the conflict is Binance’s alleged lack of transparency. The SEC has raised concerns about Binance’s failure to provide critical witnesses for deposition. Instead, only four witnesses were chosen by BAM, leaving the regulator unsatisfied. The SEC also highlighted BAM’s inconsistency in producing important business documents that they later obtained through other channels.
Hot Take: The SEC’s Strengthened Position Against Binance
The SEC’s case against Binance has been reinforced by the platform’s alleged non-cooperation and lack of transparency. Binance’s failure to fully comply with the SEC’s demands and provide essential documents and witnesses has put them at a disadvantage. Additionally, fraud allegations against Binance have intensified the SEC’s scrutiny of the exchange. As the legal battle continues, it remains to be seen how Binance will address these issues and whether they can reach a resolution faster than Coinbase.
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