Judge Tells Binance.US and SEC To Work Things Out Together, Doesn't Grant Regulator's Requests

Judge Tells Binance.US and SEC To Work Things Out Together, Doesn’t Grant Regulator’s Requests

Updated: 19 September 2023

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A federal judge told Binance.US and the US Securities and Exchange Commission (SEC) to work things out together as he declined the regulator’s requests to probe the exchange’s technological setup and to force it to hand over more documents.

“I’m not going to order from the bench right now that they produce or not produce things,” said Judge Zia Faruqu. “Let’s continue to try to work this out.”

The SEC had requested that the judge compel Binance.US to share more documents related to its investigation of the exchange and also to be allowed to inspect its software and technical infrastructure.

The judge did not rule against the SEC or Binance US during Monday’s hearing, instead encouraging both parties to work together, asking the SEC to narrow its request for information and Binance needs to provide more information about custody solution. CoinDesk reported.…

— Wu Blockchain (@WuBlockchain) September 19, 2023

Binance Says SEC Requests ‘Unduly Burdensome’

The SEC has accused Binance.US of not cooperating with its requests for information, citing the limited number of documents produced by Binance.US’s holding company, BAM Trading, during the discovery process.

The SEC described many of the documents it received as unintelligible screenshots that lacked essential details.

Binance has countered by describing the SEC’s discovery requests as “unduly burdensome.”

One of the SEC’s primary concern centers around the custody of Binance.US customer assets. The regulator is pushing for a comprehensive investigation to uncover potential connections between Binance.US and its global affiliate, Binance Holdings Limited.

Judge Faruqui set a deadline of October 10 for a joint status report and scheduled a follow-up hearing for October 12.

The SEC and Binance have been in a legal battle since the regulator filed a lawsuit against the crypto exchange in June for allegedly offering unregistered securities.