In the latest turn of events, Binance.US has called the SEC’s recent court demands “unreasonable” and “unduly burdensome.” On September 12, BAM Trading Services, which operates Binance.US, opposed the SEC’s move seeking detailed information, stating that most of the requests were beyond the scope of the consent order initially agreed upon.
CEO and CFO in the Spotlight
The SEC has particularly emphasized on deposing Binance.US CEO Brian Shroder and CFO Jasmine Lee, a move seen as “unreasonable” by Binance.US legal representatives. According to them, both Shroder and Lee do not hold unique knowledge on the daily operational details concerning the custody and transfer of customer assets, thus questioning the rationale behind their deposition.
Binance.US lawyers have rebuffed SEC’s allegations, mentioning a “complete disconnect” between the SEC’s approach and the expedited discovery initially agreed upon. They emphasized the lack of evidence supporting SEC’s claims, dismissing them as “misleading and mistaken.” The legal team further underscored that the SEC has not substantiated its allegations with pertinent evidence, which indicates diversion of customer assets.
Protective Motion in Place
It is worth noting that this response comes after a protective motion was agreed upon by both parties on September 11. The motion necessitates the filing of confidential data under seal, thereby limiting access to a restricted group, including the judge and the legal teams representing both the plaintiff and the defendant. This motion ensures the confidentiality of the information while catering to the necessities of the legal process.
What Comes Next?
As the legal skirmish continues, it remains to be seen how the SEC will respond to Binance.US’s recent filing. The cryptocurrency community watches eagerly, as the outcome holds potential ramifications for the industry’s regulatory landscape in the U.S.
The narrative builds on with every new motion filed; each party firm on its stance, waiting to see which direction the scales of justice will tip. It is a critical moment for the cryptocurrency landscape as it grapples with evolving regulatory frameworks globally, with the U.S being a pivotal player in shaping these regulations. The coming days are expected to witness significant developments as both parties brace for the next phase of this legal battle.