As the world’s leading crypto exchange continues its battle against the SEC – and other U.S. regulators – requests for extra documentation abound.
Judge Accuses SEC Of Overreach
Earlier this week, the SEC complained about the inadequate amount and quality of information made available by Binance and its U.S. subsidiary. According to the regulator, the data handed over was scarce, consisting partially of “unintelligible screenshots,” despite Binance’s agreement to furnish necessary evidence.
The SEC also alleged that Binance attempted to prevent its executives from testifying. Responding to these grievances, U.S. Magistrate Judge Zia Faruqui criticized the SEC for embarking on a “fishing expedition,” by making broad and vaguely related requests for information.
Internal Software Off-Limits For Now
A pivotal issue in the tussle is the access to Binance and Binance U.S.’s internal software. The SEC asserts that inspecting the software could substantiate their claim regarding the close operational ties between the two entities, potentially unveiling that U.S. customer assets are held abroad – a central accusation in the regulator’s case.
Judge Faruqui, however, denied the SEC’s request to scrutinize the internal workings of Binance, advising them to come with more tailored requests and seek additional witnesses for their investigation. “I am not inclined to allow the inspection at this time. At some point, we are going to have to bite the bullet and move on with the case,” Judge Faruqui stated, emphasizing the need to progress the case without further delays.
Matthew Martens, a lawyer from WilmerHale representing Binance.US, echoed the judge’s sentiment, affirming that they have responded to every targeted request from the SEC. He criticized the government’s “foolishness of document requests” and expressed readiness to proceed with the case with the evidence provided so far.
While the request for accessing the software has been denied for the time being, the door remains open for further discoveries if justified in the evolving scenario, steering the high-profile legal dispute into its next phase.
