SEC’s Lawsuit Against Binance.US Faces Setback as Judge Rejects Software Probe Request: Report
A setback has occurred in the U.S. Securities and Exchange Commission’s (SEC) legal battle against Binance’s American affiliate, as a federal magistrate judge declined to grant the SEC permission to inspect Binance.US’s technological infrastructure.
According to Bloomberg, the SEC requested permission to examine Binance.US’s software in an effort to establish potential connections between Binance.US and Binance’s global operations. The world’s largest exchange by trading volume. However, Magistrate Judge Zia M. Faruqui rejected the request, suggesting the SEC provide more specific details for consideration. The SEC had initially sued Binance, its CEO Changpeng Zhao, and Binance.US in June, alleging violations of securities laws.
This development follows similar regulatory actions against other cryptocurrency exchanges, including Coinbase, and heightened scrutiny from lawmakers, with Senators Elizabeth Warren and Chris Van Hollen requesting a Department of Justice investigation into Binance’s practices. Binance.US also suspended US dollar deposits and withdrawals shortly after the SEC’s charges were filed.
Clever Robot News Desk 21st September 2023