SEC Challenges Binance US's Objections in Latest Court Motion – Here's What You Need to Know
In a new development today, the U.S. Securities and Exchange Commission (SEC) has asked a court to dismiss the objections raised by Binance US regarding the regulator's recent legal motion.
According to CoinDesk, the SEC claimed that an audit of Binance US revealed difficulties in confirming that the company was fully backed by collateral. Binance US has countered these requests, arguing that the SEC is overstepping its jurisdiction.
Binance US argued that the SEC's demands are too broad and fall outside the scope of their authority. Specifically, they claimed that the SEC was asking for documents and information that were not within its control and were better suited for other parties.
"BAM objects to the Requests to the extent that they are vague, ambiguous, overbroad, lacking in particularity or oppressive and/or call for information or documents beyond the relevant scope of or disproportionate to the needs of the Consent Order, as well as on the grounds that they are unduly burdensome because they would impose a significant expense and inconvenience on BAM." Binance US stated in today's court filing.
The SEC initially filed a lawsuit against Binance in June. The lawsuit also implicates Binance Holdings, the global parent company of Binance US, and its founder Changpeng "CZ" Zhao. The central allegation is that they operated an unlicensed securities exchange.
The SEC is not pulling any punches in its critique of Binance US's asset management. They are asking the court to disregard Binance US's objections to their motions for depositions, inspections, and communication from the exchange. The SEC has even gone so far as to call the company's asset custody "shaky."
In today's court filing, the SEC has asked a D.C. court to
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