Binance and SEC Clash Over Evidence Production and Witness Depositions in Ongoing Legal Battle
The legal battle between Binance and the United States Securities and Exchange Commission (SEC) continues to intensify as court documents shed light on the clash over evidence production and witness depositions in the SEC’s case against the leading cryptocurrency exchange.
SEC Alleges Non-Compliance by Binance.US
According to a joint status report filed on January 25, the SEC alleges that BAM Trading Services, the parent company of Binance.US, has not fully complied with its information requests. The regulatory body seeks detailed insights into the custody and liquidity of assets, expressing concerns that Binance.US might have undisclosed control mechanisms over customer funds.
BAM Refutes Allegations
BAM’s attorneys vehemently refute these allegations, asserting that the company has adhered to all document production requirements stipulated in the consent order and the expedited recovery request. They argue that the SEC’s methods have imposed an undue burden on BAM.
Disagreements Over Depositions
The report highlights pending requests for depositions from BAM Trading Services’ former CEO and CFO. BAM argues that additional depositions from its current or former personnel are unnecessary, stating that the regulator has already gathered sufficient information.
Contention Over Consent Order
BAM contends that the SEC is exceeding the agreed terms of the consent order, expanding its probe beyond the safety and accounting of customer assets. The regulator is reportedly seeking evidence related to concerns about potential control over customer assets.
Potential Examination of Changpeng Zhao
Another point of contention is the potential examination of Binance co-founder Changpeng Zhao. Disagreements persist over the specifics of Zhao’s deposition, including its scope, timing, and location.
Hot Take: Binance and SEC’s Ongoing Battle
The legal battle between Binance and the SEC continues to escalate as both sides clash over evidence production and witness depositions. The SEC alleges non-compliance by BAM Trading Services, raising concerns about undisclosed control mechanisms over customer funds. BAM vehemently refutes these allegations, asserting that it has adhered to all document production requirements. Disagreements also arise regarding depositions from former personnel and the scope of examination for Changpeng Zhao. As the battle intensifies, the outcome remains uncertain, but the clash between Binance and the SEC has significant implications for the cryptocurrency industry as a whole.
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