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Binance.US Responds to SEC, Calls Agency’s Requests ‘Unreasonable’

Summary:
Lawyers representing Binance.US believe that, overall, the SEC’s moves so far would do more harm than good for its bidding. Binance.US has claimed that the United States Securities and Exchange Commission’s (SEC) requests have been “unreasonable” with most of its requests. This is according to sealed documents filed by attorneys of the Binance.US cryptocurrency exchange on September 12. The filing – a response to SEC’s earlier request to get additional details from Binance, says most of the requests by the regulator are “unreasonable” and “unduly burdensome”. As earlier reported, the SEC previously filed a motion for depositions by the exchange’s executives and further discovery. That is as it concerns BAM’s CEO Brian Shroder and chief financial officer Jasmine Lee. For clarity, BAM

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Lawyers representing Binance.US believe that, overall, the SEC’s moves so far would do more harm than good for its bidding.

Binance.US has claimed that the United States Securities and Exchange Commission’s (SEC) requests have been “unreasonable” with most of its requests. This is according to sealed documents filed by attorneys of the Binance.US cryptocurrency exchange on September 12. The filing – a response to SEC’s earlier request to get additional details from Binance, says most of the requests by the regulator are “unreasonable” and “unduly burdensome”.

As earlier reported, the SEC previously filed a motion for depositions by the exchange’s executives and further discovery. That is as it concerns BAM’s CEO Brian Shroder and chief financial officer Jasmine Lee. For clarity, BAM Trading Services operates the Binance.US crypto exchange.

In response, BAM attorneys said that the SEC’s motion “does not identify any evidence” that Shroder and Lee have any involvement in the day-to-day custody and transfer of customer assets at Binance.US. As a fact, the legal team of Binance.US has offered many other witnesses, who, according to them, have more knowledge about its operations than Shroder and Lee. The witnesses include BAM’s chief information security officer Erik Kellogg, among others.

The agency also alleged that customer funds were somehow wrongfully diverted. However, it has failed to substantiate its allegations with any concrete evidence. In line with the issue of diverted funds, BAM attorneys have issued a statement saying:

“All the evidence in this matter-including documents, declarations, and sworn deposition testimony-supports BAM’s position that it has custody and control of its digital assets.”

Binance.US Lawyers Wary of SEC’s Approach

With what now appears to be an endless cycle of motions, lawyers representing Binance.US believe that the SEC might be undoing itself.

Firstly, they think that there is a “complete disconnect” between its  “abusive approach” and the limited expedited discovery to which the regulator agreed in the consent order.

Also, they believe that, overall, the SEC’s moves so far would do more harm than good for its bidding. To this end, they wrote:

“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.”

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Mayowa Adebajo

Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He's a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa's fancied distractions include soccer or discussing world politics.

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