Binance.US Responds to SEC Investigation Allegations
Binance.US (BAM) has strongly refuted the Securities and Exchange Commission’s (SEC) allegations of misappropriated investor assets, claiming that the SEC’s demands lack solid evidence. The exchange argues that the SEC’s pursuit is excessive and lacks factual basis. The SEC had accused Binance CEO Changpeng ‘CZ’ Zhao and Guangying ‘Helina’ Chen of improper actions involving customer funds. However, both Binance and CZ have vehemently denied these allegations. Binance.US asserts that it maintains custody and control of digital assets and rejects allegations of channeling customer funds through intermediary entities. The exchange questions the SEC’s requests for depositions and discovery, stating that the burden of these depositions outweighs any potential benefits.
Background on SEC Investigation
The SEC accused Binance CEO Changpeng ‘CZ’ Zhao and Guangying ‘Helina’ Chen of improper actions involving customer funds. Binance and CZ denied the allegations, and a U.S. judge denied the SEC’s initial request for an asset freeze on Binance.US. Negotiations between the parties regarding ongoing operations were mandated.
Binance.US Defends Custody and Control
Binance.US emphasized that it maintains proper custody and control of digital assets, supported by documents, declarations, and sworn deposition testimonies. The exchange rejects the SEC’s allegations of channeling customer funds through intermediary entities. BHL and Changpeng Zhao officially stated that they do not possess or exercise control over BAM’s customers’ private keys.
BAM Questions SEC’s Requests
Binance.US raised concerns about the SEC’s request for documents related to custody software and wallet solutions, arguing that the SEC has not provided a sufficient explanation for the need to depose BAM’s CEO and CFO. The exchange suggests that the burden of these depositions outweighs any potential benefits.
What’s Next in Binance vs. SEC Lawsuit Update?
The SEC has filed a motion regarding confidential information, which is awaiting court approval. The court has received submissions from both parties concerning discovery disputes, underscoring the need for prompt resolution. The CFTC is scheduled to respond to Binance on September 22nd, and Binance has until October 23rd to reply.
Hot Take: Binance.US Challenges SEC Allegations and Demands
Binance.US firmly rejects the SEC’s allegations of misappropriated investor assets, asserting that the SEC’s demands lack concrete evidence. The exchange emphasizes its custody and control of digital assets and questions the necessity of deposing BAM’s CEO and CFO. Crypto enthusiasts and industry figures have expressed support for Binance, highlighting the lack of evidence to support the SEC’s claims. The court emphasizes the need for timely resolution of discovery disputes, as the legal proceedings between Binance and the SEC continue.
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