Binance Seeks Court Shield Against SEC!

  • Binance.US is seeking court protection against the SEC’s alleged “fishing expedition”.
  • The exchange claims that the SEC’s demands for information exceed reasonable limits.
  • Binance.US argues that the SEC has failed to provide evidence of misuse of customer assets.

Binance.US, the American branch of Binance, has requested court protection against what it claims to be an overreaching investigation by the Securities and Exchange Commission (SEC). The exchange alleges that the SEC’s demands for information have crossed the line and that the regulator has yet to provide evidence of misuse of customer assets.

Allegations of a “Fishing Expedition”

binance-us

The term “fishing expedition” is often used in legal contexts to describe a broad and aimless investigation conducted by one party against another, with the intention of finding any minor detail that could be used to their advantage. Binance.US has accused the SEC of conducting such an investigation, claiming that the regulator has been making excessive demands for information and documents, without a specific target in mind.

Claims of Overreach by the SEC

sec

In a petition submitted to the court on August 14, Binance.US stated that it has been cooperating in good faith with the court. However, it alleges that the SEC has been requesting nearly all files related to customer assets, which the exchange considers to be an unreasonable overstep. The court order that allowed the SEC to conduct such a thorough examination of these documents was issued in June, initiating a discovery process regarding Binance.US’s custody, security, and compliance of customer assets.

No Evidence of Misuse of Assets

Despite the extensive investigation, Binance.US asserts that the SEC has failed to provide any evidence of misuse of customer assets. The exchange also argues that the SEC’s demands have started to become irrelevant to the case and that the exchange’s custody operations are not the subject of the SEC’s lawsuit. The SEC has until November 2022 to request all communication records related to dozens of topics, many of which, according to Binance.US, have no relation to customer assets.

Conclusion

The ongoing legal battle between Binance.US and the SEC highlights the challenges that cryptocurrency exchanges face in navigating regulatory scrutiny. As the case unfolds, it will be interesting to see how the court responds to Binance.US’s claims of overreach and whether the SEC can provide evidence of misuse of customer assets. This case could potentially set a precedent for future interactions between cryptocurrency exchanges and regulatory bodies.

BREAKING NEWS

Sorare Migrates to Solana (SOL): All Cards Reissued as Solana NFTs, ETH Balances Moved to Base

Sorare, the Web3 fantasy sports platform, confirmed plans to...

Solana-Powered 375ai Raises $5M Led by Delphi Ventures to Scale Vehicle-Based DePIN Data Network to NYC, Miami and Global Markets

375ai, a Solana-powered edge data intelligence network, closed a...

Bitcoin Markets Eye CLARITY Act as Rep. Bryan Steil Says Republicans Still Aim to Pass Crypto Bill by 2026 Despite U.S. Shutdown

COINOTAG News, October 9 — Citing Cointelegraph, Wisconsin Congressman...

Farcaster Adds BNB Chain Support: Swap, Transfer and Track Popular Tokens on the Decentralized Social Protocol

On October 9, official sources confirmed that decentralized social...
spot_imgspot_imgspot_img

Related Articles

spot_imgspot_imgspot_imgspot_img

Popular Categories

spot_imgspot_imgspot_img