Binance.US Condemns SEC’s “Overboard” Deposition Request
The exchange termed the regulator’s approach as “unduly burdensome.”
The legal tussle continues at the U.S. District Court for the District of Columbia. Crypto exchange Binance.US (BAM) has jumped the gun in its ongoing standoff in court with the U.S. Securities and Exchange Commission (SEC), terming the regulator’s probe into its operations as “freewheeling” and “unduly burdensome.”The defiance tone follows an ongoing investigation into Binance CEO Changpeng ‘CZ’ Zhao and a prominent individual, Guangying ‘Helina’ Chen, who have both been caught in the middle of a wide-ranging accusation of “misusing,” “commingling,” and “dissipating” customer funds.Defending Custody and ControlIn its sealed response, BAM vehemently rejected the SEC’s allegations of channeling customer funds, affirming that CZ and his co-accused don’t have custody or control over the private keys for customer assets on the exchange.
In particular, BAM noted that it has filed sufficient documents, declarations, and sworn deposition testimony to support its position that it has custody and control of its digital assets.The exchange raised concerns about the regulator’s request to depose its CEO and CFO. It sought the court’s clarity on whether the move falls within the scope of the consent order issued by Judge Amy Berman Jackson.“BAM’s CEO and CFO have no unique knowledge regarding facts relevant to the limited topics identified in the consent order’s expedited discovery provision,” the court document read. “The burden imposed by these depositions far outweighs their potential benefit, and the discovery sought is disproportionate to the needs contemplated by the consent order.”What’s Next in Binance’s Ongoing Woes?Regulatory pressure continues to pile on Binance, with keen observers bracing for bad news ahead, especially after the SEC submitted a sealed motion to file confidential information in court pertaining to Binance Holdings, BAM Trading, and CZ.
On top of the legal tussle, Binance is currently facing an executive exodus, with many believing that the departures are likely connected to the rumored criminal probe into the exchange by the U.S. DOJ. Binance CEO says everything is alright at the exchange. Read more on this article:Binance CEO Dismisses Solvency Concerns Amid Top Exec ExitsStay updated on Binance’s 10th Proof of Reserve report:Binance Proof of Reserves: Doubts Linger 10 Issues Later