• Binance US, the US entity of digital asset exchange Binance, has filed a motion to limit the extent of discovery sought by the SEC in its investigation against the company.
• The SEC filed a lawsuit against Binance US alleging improper registration and commingling of user assets.
• In a late filing on Monday, Binance claims that the regulator has exceeded the parameters of the consent agreement in its quest to carry out more investigations into the company’s operation.
Binance US Seeks Protective Order Against Renewed SEC Probe
Binance US, the United States entity of digital asset exchange, Binance has filed a motion to limit the extent of discovery sought by the Securities and Exchange Commission (SEC) in its investigation against the company.
SEC Files Lawsuit Against Binance US
The SEC filed a lawsuit against Binance US alleging improper registration, and commingling of user assets among others in June which later spilled into a consent order after the financial regulator sought to freeze assets belonging to companies trading under name BAM Trading Services and BAM Management US Holdings.
Binance Lawyers Push Back Against Claims That Customer Assets Are at Risk
Attorneys for @binance argued that the US SEC’s restraining order to freeze its assets should be denied.
Consent Order Agreed by Both Parties
The consent order agreed by both parties was described by most industry observers as burdensome on part of company as it still gave SEC powers to “limited expedited discovery” to custody funds and total availability of assets.
Exceeded Parameters Of Consent Agreement
In a late filing on Monday, exchange claims that regulator has exceeded parameters of consent agreement in its quest to carry out more investigations into operation of company. Excerpts from filing allege that regulator has spent last 45 serving over board requests on company suggesting lengthy regulatory battle with exchange.