Binance.US Firmly Responds to SEC’s Demands, Labels Them as ‘Unduly Burdensome
Crypto News – Binance.US, a prominent cryptocurrency exchange, has issued a strong response to recent motions from the U.S. Securities and Exchange Commission (SEC), characterizing them as “excessively burdensome.”
In a joint motion, legal representatives for both the SEC and Binance.US have sought a protective order to safeguard confidential information during the ongoing legal proceedings. Additionally, Binance.US has submitted sealed documents pertaining to a proposed order and their opposition to the SEC’s motion to compel, along with other related requests.
Attorneys representing the SEC and the defendants, BAM Trading Services and BAM Management US Holdings, which oversee Binance.US operations, reached a formal stipulation and proposed order on September 5. Stipulations are legal agreements entered into by opposing parties prior to legal proceedings.
Binance.US has consistently asserted that it maintains complete custody and control of its digital assets, underscoring the absence of concrete evidence supporting the SEC’s allegations. Specifically, they have deemed the SEC’s requests for depositions of BAM’s CEO, Brian Shroder, and CFO, Jasmine Lee, as “unreasonable.”
Binance CEO Changpeng Zhao has confirmed that the exchange does not retain custody or control over customers’ private keys. While the SEC had pursued an asset freeze against Binance.US, this request was denied by a U.S. judge, who instead ordered negotiations to determine the future operations of the exchange.
Attorneys representing BAM have raised questions regarding the scope of the SEC’s requests, including those pertaining to the exchange’s custody software and wallet solutions. The legal battle between Binance.US and the SEC is ongoing, with both parties vigorously defending their positions.