On Monday, the US Securities and Exchange Commission (SEC) faced a setback when a federal magistrate judge declined to immediately grant permission for SEC officials to examine Binance.US’s software. This ruling was a setback for the SEC in its legal case against the cryptocurrency trading platform.
During a recent legal hearing, the Securities and Exchange Commission (SEC) wanted Binance to provide extensive information and make its executives more accessible for questioning. This has caused disagreements between the SEC and Binance in the past week.
In the hearing, Judge Faruqui stated that he isn’t currently in favor of granting the SEC’s request to inspect Binance. Instead, he suggested that the SEC come up with clearer and more specific requests for the information they need.
He also recommended that the SEC talk to a wider variety of witnesses. During a recent legal proceeding, Judge Faruqui expressed his reluctance to permit an inspection at the moment.
The SEC has been consistently stating that they’ve encountered difficulties in obtaining information from Binance.US. They initiated legal action against Binance.US, its global parent company Binance Holdings Ltd, and CEO Changpeng “CZ” Zhao on June 5, alleging their involvement in selling unregistered securities.
On September 15, the SEC accused Binance.US of not cooperating with their investigation. They pointed out that Binance.US’s parent company, BAM Trading, had only provided 220 documents during the discovery process.
Judge Faruqui’s recent decision not to grant the SEC immediate access to Binance.US’s software and other documents is a setback for the SEC in its ongoing case against the exchange.
The main issue the SEC is worried about regarding Binance.US is the safety of customer assets. They believe that Binance.US needs a more comprehensive investigation to uncover any possible connections to the global branch of the exchange.
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