US Judge Denies SEC’s Request to Inspect Binance.US Software
A US federal magistrate judge has rejected the U.S. Securities and Exchange Commission’s (SEC) request to examine the technological infrastructure of Binance’s American affiliate, dealing a blow to the regulator. The SEC had sought permission from Magistrate Judge Zia M. Faruqui to search through Binance.US’s software, but Faruqui declined, stating that he was not inclined to permit the inspection “at this time.” The judge instructed the SEC to come back with more specific requests. The SEC wanted to inspect the software in order to establish further connections between Binance.US and Binance’s global firm, which is the largest exchange in terms of trading volume.
SEC Lawsuit Against Binance and Coinbase
In June, the SEC filed a lawsuit against Binance, its CEO Changpeng Zhao, and Binance.US, alleging violations of securities laws. The regulatory agency also sued Coinbase, the top cryptocurrency exchange in the US, for similar reasons. Senators Elizabeth Warren and Chris Van Hollen subsequently accused Binance of lying to Congress about its business practices and requested an investigation by the U.S. Department of Justice (DOJ).
Binance.US Halts USD Deposits and Withdrawals
Binance.US suspended US dollar deposits and withdrawals shortly after the SEC charges were announced.
Hot Take: SEC Faces Setback in Binance.US Lawsuit
The US Securities and Exchange Commission (SEC) has been dealt a setback in its legal battle against Binance.US. A federal magistrate judge denied the SEC’s request to inspect the technological infrastructure of Binance’s American affiliate. The judge stated that he was not inclined to permit the inspection “at this time” and asked the regulator to provide more specific requests. The SEC wanted to examine Binance.US’s software to establish further links between the American affiliate and Binance’s global firm. This denial is a setback for the SEC, which first sued Binance, its CEO, and Binance.US in June for alleged violations of securities laws.
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