Binance and SEC Clash Over Evidence Production and Witness Depositions in Ongoing Legal Battle
The legal battle between Binance and the United States Securities and Exchange Commission (SEC) continues to intensify as court documents shed light on the clash over evidence production and witness depositions in the SEC’s case against the leading cryptocurrency exchange.
According to a joint status report filed on January 25, the SEC alleges that BAM Trading Services, the parent company of Binance.US, has not fully complied with its information requests. The regulatory body seeks detailed insights into the custody and liquidity of assets, expressing concerns that Binance.US might have undisclosed control mechanisms over customer funds, reminiscent of the FTX scandal.
BAM’s attorneys vehemently refute these allegations, asserting that the company has adhered to all document production requirements stipulated in the consent order and the expedited recovery request. They argue that the SEC’s methods, including issuing a Temporary Restraining Order (TRO) and pursuing expedited discovery, have imposed an undue burden on BAM.
“At that point, BAM believes it will have more than reasonably complied with its obligations under the Consent Order and requests that expedited discovery be deemed complete as to BAM, particularly given how much harm and burden the SEC’s TRO and approach to expedited discovery has caused BAM over the past seven months.”
Initially established to govern the SEC’s investigation, the consent order has become a focal point of contention. BAM contends that the SEC is exceeding the agreed terms, expanding its probe beyond the safety and accounting of customer assets. The company claims that the SEC is now delving into a broad examination of BAM’s custody policies and practices. This assertion adds another layer
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