Binance.US Takes On SEC’s Burdensome Demands Amid Lawsuit Tensions

Key Points:

• Binance.US challenges the SEC’s “unduly burdensome” demands, emphasizing full custody of digital assets.
• A joint motion for a protective order was filed amid a legal battle; the company opposes the SEC’s requests.
• Binance CEO confirms no control over customer private keys; asset freeze denied; negotiations ordered.

Binance.US, a leading cryptocurrency exchange, has responded to the U.S. Securities and Exchange Commission (SEC)’s recent motions with a firm stance, calling them “unduly burdensome.”

In a joint motion, attorneys for both the SEC and Binance.US requested a protective order to safeguard confidential details within the ongoing litigation. Furthermore, Binance.US submitted sealed documents concerning a proposed order and their opposition to the SEC‘s motion to compel and other related requests.

Attorneys for the SEC and defendants BAM Trading Services and BAM Management US Holdings, under which Binance.US operates, entered into a formal stipulation and proposed order on September 5. Stipulations are legal agreements between opposing parties before legal proceedings.

The exchange has maintained that it possesses full custody and control of its digital assets, emphasizing the absence of concrete evidence to support the SEC’s allegations. They particularly deemed the SEC’s requests for depositions of BAM’s CEO Brian Shroder and CFO Jasmine Lee “unreasonable.”

Binance CEO Changpeng Zhao has confirmed that the exchange does not hold custody or control over customers’ private keys. The SEC had sought an asset freeze on Binance.US, but this request was denied by a U.S. judge, who instead ordered negotiations on the exchange’s continued operations.

BAM’s attorneys argued that the SEC’s motion failed to provide any evidence implicating Shroder and Lee in the daily management of customer asset custody and transfers at Binance.US.

BAM questioned the extent of the SEC’s requests, including those related to the exchange’s custody software and wallet solutions. The legal battle between Binance.US and the SEC continues, with both parties vigorously defending their positions.

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