Judge Rejects SEC’s Plea for Immediate Access to Binance.US Software
In the ongoing case, a federal magistrate judge has rejected the Securities and Exchange Commission’s (SEC) request for immediate access to Binance.US’s software. The rejection came during a recent hearing where the SEC sought extensive information from Binance and its executives. Judge Faruqui suggested that the SEC make their discovery requests more specific and include additional witnesses.
SEC Accuses Binance.US of Non-Cooperation
The SEC has accused Binance.US of selling unregistered securities to American clients and claimed that the exchange has been non-cooperative. The SEC specifically mentioned BAM Trading, Binance.US’s holding firm, which provided incomplete and incomprehensible documents during discovery. BAM Trading also refused to submit important witnesses for depositions.
Binance Responds to SEC’s Claims
Binance has countered the SEC’s accusations, stating that they have answered every specific request from the SEC. However, they criticized what they deemed as unreasonable document requests from the government.
Impact of the Denial
The denial of immediate access to Binance.US’s software and documentation is a partial setback for the SEC in its legal battle with the exchange. The SEC is concerned about the custody of Binance.US customer assets and potential connections to the global arm of the exchange.
Since the SEC filed its complaint, Binance.US has experienced a decline in trading volume, lost banking support, suspended US dollar deposits, and undergone layoffs. The exchange also halted trading for over 100 token pairs following the SEC’s lawsuit.
Hot Take: Setback for SEC as Judge Denies Access to Binance.US Software
The recent rejection by a federal judge of the SEC’s request for immediate access to Binance.US’s software is a setback for the regulatory agency. The judge suggested that the SEC refine their discovery requests and include more witnesses, indicating that the initial request was too broad. This development prolongs the legal battle between the SEC and Binance.US, with the SEC seeking information on unregistered securities sold to American clients. As the dispute escalates, Binance.US has faced various challenges, including loss of banking support, layoffs, and a decline in trading volume. The impact of this denial may have far-reaching consequences for both parties involved.
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