The United States Securities and Exchange Commission (SEC) encountered a setback in its pursuit of immediate access to Binance.US’s software during a hearing held on September 18.
The SEC had filed a motion to compel Binance to provide detailed information and make its executives more available for depositions, a contentious issue in their recent interactions.
Judge Faruqui presided over the hearing and expressed reluctance to grant immediate access, stating that he was “not inclined to allow the inspection at this time.”
Instead, he suggested that the SEC should formulate more specific discovery requests and engage with a broader array of witnesses, as reported by Bloomberg on September 18.
The SEC has been vocal about its difficulties in obtaining information from Binance.US ever since it filed a lawsuit against the American branch of the cryptocurrency exchange, along with its global affiliate Binance Holdings Ltd and CEO Changpeng “CZ” Zhao on June 5.
The lawsuit alleges their involvement in the sale of unregistered securities.
On September 15, the SEC accused Binance.US of noncooperation in the investigation.
READ MORE:Magic Eden Unveils Solana’s cNFT Support
The regulator pointed out that Binance.US’s parent company, BAM Trading, had produced a mere 220 documents during the discovery process.
Many of these documents were described as “unintelligible screenshots and documents without dates or signatures.”
Furthermore, BAM had been reluctant to make crucial witnesses available for deposition, agreeing only to four depositions of their choosing.
Binance, on the other hand, argued that the SEC’s repeated discovery requests were “unduly burdensome.”
The SEC countered by accusing Binance of uncooperative behavior, despite having previously consented to a discovery order in the SEC’s case regarding unregistered securities operations and other allegations.
Judge Faruqui’s decision to deny immediate access to Binance.US’s software and documentation represents a partial setback for the SEC in its ongoing case against the exchange.
The SEC’s primary concern revolves around the custody of Binance.US customer assets and the need for a more comprehensive investigation to uncover potential connections with the global arm of the exchange.
Other Stories:
NFL Quarterback Trevor Lawrence and YouTube Influencers Settle FTX Lawsuit
Bitcoin Stabilizes at $26,500 After Hitting September Highs: Eyes on Federal Reserve’s FOMC Meeting
FTX Reopens Secure Customer Claims Portal Following Cyberattack
