Binance.US Condemns SEC’s “Overboard” Deposition Request

Binance.US has filed its response to the ongoing SEC lawsuit, saying the regulator is “unreasonable” and “unduly burdensome.”

Man on a boat, whilst Gary Gensler is going overboard.
Created by Kornelija Poderskytė from DailyCoin
  • Binance.US has called out the SEC over its deposition request.
  • The exchange termed the regulator’s approach as “unduly burdensome.”
  • The legal tussle continues at the U.S. District Court for the District of Columbia.

Crypto exchange Binance.US (BAM) has jumped the gun in its ongoing standoff in court with the U.S. Securities and Exchange Commission (SEC), terming the regulator’s probe into its operations as “freewheeling” and “unduly burdensome.”

The defiance tone follows an ongoing investigation into Binance CEO Changpeng ‘CZ’ Zhao and a prominent individual, Guangying ‘Helina’ Chen, who have both been caught in the middle of a wide-ranging accusation of “misusing,” “commingling,” and “dissipating” customer funds.

Defending Custody and Control

In its sealed response, BAM vehemently rejected the SEC’s allegations of channeling customer funds, affirming that CZ and his co-accused don’t have custody or control over the private keys for customer assets on the exchange.

In particular, BAM noted that it has filed sufficient documents, declarations, and sworn deposition testimony to support its position that it has custody and control of its digital assets.

The exchange raised concerns about the regulator’s request to depose its CEO and CFO. It sought the court’s clarity on whether the move falls within the scope of the consent order issued by Judge Amy Berman Jackson.

“BAM’s CEO and CFO have no unique knowledge regarding facts relevant to the limited topics identified in the consent order’s expedited discovery provision,” the court document read. “The burden imposed by these depositions far outweighs their potential benefit, and the discovery sought is disproportionate to the needs contemplated by the consent order.”

What’s Next in Binance’s Ongoing Woes?

Regulatory pressure continues to pile on Binance, with keen observers bracing for bad news ahead, especially after the SEC submitted a sealed motion to file confidential information in court pertaining to Binance Holdings, BAM Trading, and CZ.

On top of the legal tussle, Binance is currently facing an executive exodus, with many believing that the departures are likely connected to the rumored criminal probe into the exchange by the U.S. DOJ.  

Binance CEO says everything is alright at the exchange. Read more on this article:
Binance CEO Dismisses Solvency Concerns Amid Top Exec Exits

Stay updated on Binance’s 10th Proof of Reserve report:
Binance Proof of Reserves: Doubts Linger 10 Issues Later

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Brian Danga

Brian Danga, a Kenyan crypto reporter, is dedicated to delivering breaking news and updates from the cryptocurrency world. With a background as a Web3 writer and project manager, he recognizes the importance of unbiased reporting. Holding an LLB degree from the University of Nairobi, Brian's analytical skills contribute to his accurate news reporting. His personal interests include cooking, watching documentaries, reading, and engaging in intellectual discussions.