In a recent confrontation with the US Securities and Exchange Commission (SEC), Binance boldly labeled the regulator’s ongoing demands as “too broad” and “excessively burdensome.” The cryptocurrency exchange giant firmly maintains that the SEC has yet to provide substantial evidence to support their serious allegations, insisting that all available evidence confirms Binance’s proper management and control of its digital assets.
The SEC has still not explained why the depositions of BAM’s CEO and CFO fall within the scope of the consent order.
The burden imposed by these depositions far exceeds their potential benefit, and the discovery requested is disproportionate to the needs contemplated by the consent order.
At the heart of this conflict, the SEC has accused key figures such as Binance CEO Changpeng ‘CZ’ Zhao and Guangying ‘Helina’ Chen of facilitating the misappropriation of billions of customer funds by various intermediary entities. These claims, stemming from statements made by an SEC accountant, have been categorically denied by the accused parties including Binance. In a staunch defense, Binance emphasizes that all activities have been proper, with no abusive appropriation of client assets on their platform.
The Judge’s Initial Decisions in the SEC vs Binance Case
Despite widespread allegations, a US judge has refused to grant the SEC’s request to freeze Binance.US assets, instead encouraging the two parties to engage in constructive dialogue regarding the future of the exchange’s operations. This move seems to have fortified Binance’s position, which has raised significant concerns about the broad nature of the SEC’s demands, encompassing a thorough review of their wallet solutions and custody software.
As the case progresses, Binance continues to question the SEC’s inflexible approach, especially regarding the request for depositions of their key executives, a move that Binance describes as disproportionately heavy and outside the areas of the initially agreed-upon Consent Order.