Binance.US Denounces SEC’s Court Requests as ‘unreasonable’ in Latest Filing

Binance.US has delivered a robust response to the recent developments in its ongoing legal battle with the United States Securities and Exchange Commission (SEC). In what appears to be a strategic move, the exchange has deemed most of the SEC’s requests as “unreasonable” and “unduly burdensome.”

On September 12, legal representatives for BAM Trading Services, the operator of Binance.US, submitted confidential documents opposing the SEC’s attempts to extract additional information from the exchange. In their arguments, the defendants contended that the SEC’s requests for production and interrogatories went far beyond reasonable bounds and were outside the scope of the previously agreed-upon consent order.

The heart of the matter lies in the SEC’s pursuit of clarity, with the regulator’s demands for depositions of BAM CEO Brian Shroder and Chief Financial Officer Jasmine Lee labeled as “unreasonable” by BAM’s legal team. They emphasized that Shroder and Lee do not possess unique insights into the day-to-day management details related to the custody and transfer of customer assets on Binance.US.

According to the attorneys, BAM has made available numerous witnesses who possess a deeper understanding of the exchange’s operations, including Chief Information Security Officer Erik Kellogg. They argued that the burden imposed by deposing Shroder and Lee far outweighs any potential benefits, with the requested discovery being disproportionate to the requirements stipulated in the consent order.

Additionally, BAM’s legal team challenged the SEC’s assertions, claiming that the regulator still lacks substantial evidence to substantiate its allegations of asset diversion. They contended that the SEC’s allegations, forming the basis of its cross-motion to compel, are “misleading and mistaken.”

The attorneys also pointed out a significant inconsistency between the SEC’s broad approach and the limited expedited discovery provisions agreed upon in the consent order. This discrepancy, they argued, highlights a “complete disconnect” between the SEC’s tactics and the framework established for the case.

This response from BAM comes in the wake of a collaborative move by the SEC and Binance to file a protective motion. This motion, submitted on September 11, involves the parties agreeing to keep confidential information sealed from public access. Such protected materials will be restricted to authorized individuals, including the judge, legal representatives, plaintiffs, and defendants.

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