Binance.US, the operator of the Binance.US cryptocurrency exchange, has responded to the United States Securities and Exchange Commission (SEC) regarding the motion to compel and reply. In a filing on September 12, the attorneys for BAM Trading Services, the entity behind Binance.US, argued against the SEC’s requests for additional details, calling them “unreasonable” and “unduly burdensome.”
The defendants claimed that the SEC’s requests for production and interrogatories were overly broad and beyond the scope of the consent order. They argued that the demand for certainty and the requests for depositions of BAM CEO Brian Shroder and CFO Jasmine Lee were unreasonable. The attorneys stated that Shroder and Lee are not involved in the day-to-day management details concerning the custody and transfer of customer assets at Binance.US.
According to BAM’s attorneys, the burden imposed by these depositions outweighs their potential benefit, and the discovery sought by the SEC is disproportionate to the needs contemplated by the consent order. They also emphasized that there is a disconnect between the SEC’s approach and the limited expedited discovery agreed upon in the consent order.
The defendants further argued that the SEC lacks evidence to support its allegations that customer assets have been diverted. They believe that the SEC’s allegations, which form its cross-motion to compel, are misleading and mistaken.
BAM’s response comes after the SEC and Binance agreed to a protective motion, requiring the filing of confidential information under seal. This motion was submitted on September 11, with both parties promising to restrict access to the filed materials to the judge, attorneys, plaintiffs, and defendants.
It is worth noting that Binance.US has offered other witnesses with more insights into its operations, including BAM’s Chief Information Security Officer Erik Kellogg. The attorneys believe that these witnesses can provide the necessary information without imposing the burden of deposing the CEO and CFO.
In recent times, Binance and its subsidiaries have faced increased scrutiny from regulators worldwide. The response from Binance.US suggests a strong pushback against the SEC’s requests, highlighting the company’s willingness to contest the allegations.
As the legal battle between the SEC and Binance continues, market participants are closely watching the developments. The outcome of this case could have significant implications for the cryptocurrency industry as a whole.
In conclusion, Binance.US has filed a response to the SEC, rejecting the majority of the regulator’s requests as unreasonable and unduly burdensome. The company contends that the SEC lacks evidence to support its allegations and argues that the requested depositions are disproportionate to the needs outlined in the consent order. The ongoing legal dispute between Binance and the SEC highlights the growing regulatory scrutiny faced by cryptocurrency exchanges and platforms.
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