Binance
SEC vs Binance takes new turn as regulator asks court to step in
Is Binance.US concealing vital data? Here’s how SEC dives into the mysterious depths of this legal battle.
The U.S. Securities and Exchange Commission (SEC) has accused Binance’s United States arm, Binance.US, of withholding crucial information regarding customer assets and other vital aspects amid an ongoing investigation.
In a joint status report filed on 5th March to a Washington, D.C. District Court, the SEC claimed that BAM Trading Services, operating as Binance.US, has been either unwilling or unable to respond to inquiries regarding the custody of customer assets.
According to the filing, the lawyers highlighted,
“But the SEC believes it is at an impasse with BAM as to certain key questions that BAM has been unable or unwilling to answer, and thus, the Court’s intervention is warranted.”
As a result, the regulator has requested the court’s intervention to expedite the discovery process.
SEC vs Binance
According to statements from the SEC’s lawyers, there is a deadlock with BAM Trading Services (Binance.US) regarding crucial inquiries, leading to the necessity for court intervention.
“Among other things, BAM refused to comply with basic discovery obligations, such as producing attachments and metadata associated with responsive documents or providing written responses.”
In response to the SEC’s allegations, the exchange argued that it has adhered to all of the regulator’s extensive requests for information and urged the court to terminate the expedited discovery process.
Binance.US staunchly refuted the SEC’s assertions regarding customer assets. Binance.US added,
“BAM has gone above and beyond its obligations to provide “limited” expedited discovery pursuant to the Consent Order by responding to the SEC’s exceptionally broad requests and unsubstantiated concerns related to asset custody.”
How it all began?
In June 2023, the SEC accused Binance, Binance.US, and Changpeng Zhao of selling unregistered securities and mishandling customer assets.
Binance later settled with the U.S. Department of Justice for $4.3 billion on 21st November, admitting to money laundering violations. Additionally, Zhao’s guilty plea may result in an 18-month prison term at his sentencing hearing on 3rd April.
In conclusion, the SEC’s ongoing legal battle with Binance.US highlighted regulatory challenges in the crypto industry. However, Zhao’s upcoming sentencing hearing adds further intrigue, shaping the crypto community’s anticipation of future developments.
