Binance.US, the US-based affiliate of the global cryptocurrency exchange Binance, has filed a sealed document in response to the Securities and Exchange Commission (SEC)’s requests for more information.
The document, which was submitted on September 12, argues that the SEC’s requests are “unreasonable” and “unduly burdensome” and that the regulator has failed to provide any evidence to support its allegations.
Binance.US Stands Its Ground Against SEC
The SEC has been investigating Binance.US for allegedly violating securities laws by allowing customers to trade digital assets that may be considered securities. The regulator has also accused Binance.US of diverting customer funds to other entities without proper authorization.
The SEC has sought to depose two executives of BAM Trading Services, the operator of Binance.US, namely Brian Shroder, the CEO, and Jasmine Lee, the CFO.
However, Binance.US’s lawyers have claimed that Shroder and Lee have no involvement in the custody and transfer of customer assets and that the SEC has not identified any evidence to the contrary.
They have also offered other witnesses who have more knowledge about Binance.US’s operations, such as Erik Kellogg, the chief information security officer. Moreover, they have asserted that Binance.US has full control and custody of its digital assets and that there is no proof of any wrongful diversion of funds.
Binance.US’s lawyers have also criticized the SEC’s approach as “abusive” and “disproportionate” to the needs of the consent order that was agreed upon by both parties. They have stated that the SEC’s requests would impose an excessive burden on Binance.US and its employees and that they would not yield any relevant information.
They have urged the court to deny the SEC’s motion and to limit the scope of discovery. Binance.US is one of the many entities affiliated with Binance that have faced regulatory scrutiny in recent months.
Binance has been under pressure from authorities in several countries, such as the UK, Japan, Canada, and Singapore, over its compliance with local laws and regulations. Binance has maintained that it is committed to working with regulators and improving its standards.