US judge declines SEC's request for immediate access to Binance ...

MARKET_WATCH

Crypto

In the latest update on the ongoing legal tussle between the United States Securities and Exchange Commission (SEC) and Binance.US, a US judge has rejected the SEC's immediate request for access to Binance.US's software and other documentation. The decision was made during a hearing held on Monday, marking a partial setback for the SEC in its pursuit of a comprehensive investigation into the cryptocurrency exchange.

 

The SEC, which initiated legal action against Binance.US on June 5, 2023, alleges that the exchange was involved in the sale of unregistered securities. The regulator has also raised concerns about the custody of customer assets at Binance.US and is seeking to uncover potential connections between Binance's American arm and its global affiliate, Binance Holdings Ltd, along with CEO Changpeng "CZ" Zhao.

 

However, during Monday's hearing, Judge Faruqui expressed reservations about allowing an inspection at this time. Instead, he suggested that the SEC should come up with more specific requests for discovery and engage with a broader range of witnesses. This move appears to strike a balance between the SEC's demands for transparency and Binance.US's concerns of being burdened with excessive information requests.

 

The SEC has accused Binance.US of noncooperation in the investigation, pointing out that Binance.US's holding company, BAM Trading, had only produced 220 documents during the discovery process. Many of these documents were described as "unintelligible screenshots and documents without dates or signatures." The regulator also noted that BAM Trading had been reluctant to provide essential witnesses for deposition.

 

On its part, Binance.US has characterized the SEC's repeated requests for discovery as "unduly burdensome." This ongoing dispute over cooperation has added complexity to an already contentious legal battle.

 

Today's decision by Judge Faruqui comes amidst ongoing scrutiny of Binance US. The exchange has been under intense scrutiny ever since the US Securities and Exchange Commission (SEC) initiated a lawsuit against it. This situation led to a decline in trading volume and the departure of key executives from the company.

 

The SEC's request for an investigation into Binance US was denied earlier today by the court. The SEC’s argument hinged on the assertion that Ceffu, a custody platform, was, in reality, an entity associated with Binance and was used to transfer funds of US customers out of the country, thereby violating a prior agreement between Binance US and the SEC.

 

In response to these developments, Binance.US argued that the SEC's request was overly intrusive and burdensome. Ultimately, US District Judge Zia Faruqui rejected the SEC’s request for an inspection but required Binance US to furnish additional documentation while expressing doubts about the exchange’s ability to maintain control over its assets.

 

Source : Investing.com / September 19, 2023

rayn.finance logo

Automata FRANCE SAS

240 rue Evariste Galois,

06410 Biot,

Sophia Antipolis

Automata Pay

65-66 Warwick House 4th

Floor, Queen Street, London

England, EC4R 1EB

Automata Pay Europe Ltd

3rd Floor Ormond Building,

31-36 Ormond Quay Upper,

Dublin 7, D07 Ee37

Automata ICO Ltd

Italian Branch

Via Archimede, 161,

00197 Roma

Italy

The purchase of digital assets is subject to a high market risk and price volatility. Changes in value can be significant and occur rapidly and without warning. Past performance is not a reliable indicator of future performance. The value of an investment and returns can fluctuate both up and down, and you may not recover the amount you invested. RISK WARNING

Automata ICO Limited has a branch in Italy with its registered office at Via Archimede, 161, Roma, Italy, and registered in Italy under number 96550860587 with the Organismo Agenti e Mediatori (OAM) as a Virtual Asset Service Provider (VASP).

Automata France SAS is a company registered in France with the company number 902 498 617. Automata FRANCE SAS is registered with the french Financial Market Authority, l’Autorité des marchés financiers (“AMF”), as a provider of Virtual Asset Service Provider under number E2023-087.

Automata Pay Europe Limited is a partner of Modulr Finance B.V., a company registered in the Netherlands with company number 81852401, which is authorised and regulated by the Dutch Central Bank (DNB) as an Electronic Money Institution (Firm Reference Number: R182870) for the issuance of electronic money and payment services. Your account and related payment services are provided by Modulr Finance B.V. Your funds will be held in one or more segregated accounts and safeguarded in line with the Financial Supervision Act. How we keep your money safe.