Federal Judge Denies SEC’s Request for Access to Binance.US Technology in Ongoing Legal Battle
In a pivotal moment in the ongoing legal skirmish between Binance.US and the U.S. Securities and Exchange Commission (SEC), a federal judge has made a significant decision. The judge has firmly rejected the SEC’s plea to gain access to Binance.US’s technology systems during a recent hearing, in which Binance.US vehemently argued that the SEC’s request was overly broad and intrusive.
Federal Magistrate Judge Zia Faruqui, presiding over the case, announced that he was disinclined to grant the inspection at this juncture. Instead, he suggested that the SEC should refine its request and focus on conducting more targeted interviews with relevant witnesses. This ruling underscores the court’s reluctance to provide the SEC with unrestricted access to Binance.US’s technology infrastructure.
SEC’s Legal Battle with Binance.US Intensifies
In its legal battle with Binance.US, the SEC had previously initiated expedited discovery procedures aimed at swiftly obtaining essential information. The SEC resorted to this measure because it accused Binance.US of failing to cooperate adequately with their ongoing investigation, a revelation that surfaced through recently unsealed court documents.
The SEC’s complaint alleges that both Binance.com and Binance.US should have registered as exchange platforms, broker-dealers, and clearing agencies under existing regulations. The SEC contends that these entities effectively ran an unlicensed securities exchange, raking in substantial fees amounting to a staggering $11.6 billion from U.S. customers since July 2017.
Following the recent decision by the judge, the next crucial hearing in this high-stakes legal tussle is slated for October 12th. This case continues to captivate considerable attention within the cryptocurrency industry and regulatory circles alike, with the potential to significantly influence the broader crypto landscape in the United States.
Disclaimer: Please be aware that this article is intended solely for informational purposes and should not be construed as legal, tax, investment, financial, or any other form of advice.
