SEC Fires Back At BinanceUS With Evidence And Testimony

In the latest development in the U.S. Securities and Exchange Commission (SEC) lawsuit against Binance, the securities regulator has filed exhibits against Binance.US revealing that the exchange fails to cooperate in accordance with an earlier agreed consent order. Meanwhile, Binance.US claims that the SEC requests are “overbroad” and “unduly burdensome” in a protective order.

SEC Files Opposition To Binance US

CoinGape Media reported that the U.S. Securities and Exchange Commission (SEC) has filed a “motion to unseal” to reveal the contents of some confidential documents. Also, both parties have agreed to public some documents related to the motion to compel by the SEC for discovery requests.

According to multiple filings related to the motion to compel, the SEC has raised concerns regarding the lack of cooperation from BAM Management and BAM Trading (Binance.US) regarding the separation of wallets, systems, and teams from Binance.

The SEC has argued that Ceffu (formerly Binance Custody) continues to act as custody for both Binance and Binance.US, which is against the agreed-upon consent order. The SEC also seeks disposition from CEO Brian Shroder and Jasmine Lee, but Binance.US is against it. The SEC has already received deposition from other Binance.US executives including Erik Kellogg and Tao Zhang.

The SEC filed 31 exhibits to support its motion to compel and opposition to motion of protective order by Binance.US. The latest filings revealed details on only 10 exhibits out of 31. The SEC seeks the court to reject the protective order by BAM.

Meanwhile, Magistrate Judge Faruqui on Wednesday signed a minute order in the lawsuit, scheduling the next hearing on September 18. A possible decision on the protective order and motion to compel to reveal more documents and dispositions from executives.

Surprisingly, CEO Brian Shroder resigned earlier this week amid another layoff at Binance.US, causing FUD in the crypto industry.

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