Binance.US Opposes SEC, Calls Requests “Unduly Burdensome” in New Filing

cryptonews.com:

Binance.US has called the ‘compel and reply’ motion by the Securities and Exchange Commission (SEC) unreasonable and “unduly burdensome.”

According to court documents filed on Sept. 12 by BAM Trading Services, the legal entity of Binance.US, the exchange claims the depositions requested by the Commission are overboard.

Following the consent order after the SEC sought to freeze assets belonging to the defendants, the Commission is seeking fresh interrogatories and testimonies from CEO Brian Shrider and Jasmine Lee, the chief financial officer.

“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 defendant's attorneys also pointed out that Brian and Lee are not involved in the day-to-day running of the exchange and therefore do not “identify any evidence.” 

The lawyers also stated that the claims of the SEC border on custody, transfer, and commingling of user assets, therefore, seeking witness statements from the CFO and CEO is a stretch as they have been voluntarily offered depositions from staff with direct knowledge of the matter including Erik Kellogg, the chief information security officer. 

“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,” they added. 

In June, the SEC leveled allegations on Binance.US and Coinbase which both institutions vowed to vigorously defend expressly denying all allegations.

The recent move by the defendants comes after both parties agreed on a protective motion to file confidential information under seal on September 11 granting access to only the judge, lawyers, and both