Binance.US Pushes Back Against SEC’s Overreach in Custody Dispute
Binance.US has taken steps to limit the extent of discovery requested by the Securities and Exchange Commission (SEC) in its ongoing case against the cryptocurrency exchange.
Back in June, Binance’s U.S. branch reached a consent order with the SEC, a result of concerns about the safety of customer digital assets held by the company, allowing for “limited expedited discovery” regarding the custody and availability of these assets. However, Binance.US argues that the SEC’s recent discovery requests far exceed the agreed-upon scope, describing them as an inappropriate “fishing expedition.”
The company asserts that the SEC’s demands go beyond the consent order’s limitations and involve unrelated matters, such as requesting communications and depositions from executives on various unrelated topics. Binance.US argues that these requests are unreasonable and do not align with the core of the case, highlighting the absence of any presented evidence indicating mishandling of customer assets.
Additionally, the company maintains that interviewing employees with deeper knowledge of asset custody should take precedence, asserting that deposing top executives like the CEO and CFO would prove unproductive and disruptive.
Clever Robot News Desk 16th August 2023
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