SEC Denied Access to Binance.US Software
The US Securities and Exchange Commission (SEC) was unsuccessful in its attempt to gain access to Binance.US’s software. The SEC has been struggling to obtain information from Binance.US after filing a lawsuit against the American exchange and its global affiliate, Binance Holdings Ltd. During a hearing, Magistrate Judge Zia Faruqui advised the SEC to make more specific requests and involve additional witnesses instead of allowing immediate access.
Binance.US Pushes Back Against SEC
Binance.US’s legal team has criticized the SEC’s request for documents as overly broad and likened it to a “fishing expedition.” The company has also resisted making its top executives available for deposition, arguing that they lack firsthand knowledge of customer asset security and custody. Binance.US claims to have cooperated with specific requests from the SEC but refuses to respond to what it deems unreasonable demands.
Concerns Over Crucial Documents and Witnesses
Following the lawsuit, Binance.US reached an agreement with the SEC to prevent a complete freeze of its assets. However, the SEC has expressed concerns about not receiving essential documents and facing obstacles in deposing key witnesses. Magistrate Judge Faruqui urged both parties to move forward with the case at some point.
Hot Take: SEC Faces Hurdles in Investigation Against Binance.US
The US SEC’s attempt to gain access to Binance.US’s software has been denied by a magistrate judge. The regulator has been struggling to obtain information from the American exchange following its lawsuit against Binance Holdings Ltd. and Binance.US. Binance.US’s legal team argues that the SEC’s document requests are overly broad, while the company has cooperated with specific demands. The SEC is concerned about missing crucial documents and difficulties in deposing key witnesses. This procedural setback is temporary, and the case is expected to move forward in the future.
By
By
By
By
By