Binance.US has responded to the U.S. Securities and Exchange Commission’s (SEC) motion to compel and reply, calling most of the SEC’s demands “unreasonable” and “overly burdensome.”
On September 12, BAM Trading Services, a lawyer who operates the Binance.US cryptocurrency exchange submit Object to the SEC’s sealed filing seeking more details from Binance.US.
The defendants argued that the SEC’s production and inquiry requirements were “overbroad, overly burdensome” and “beyond the scope of the consent order.” BAM lawyers claim the SEC’s demand for certainty and the testimony of BAM CEO Brian Shroder and CFO Jasmine Lee are “unreasonable.”
BAM lawyers said the SEC’s motion “found no evidence” that Schroeder and Li were involved in the day-to-day management details of the custody and transfer of Binance.US customer assets.
“BAM’s CEO and CFO have no unique knowledge of the facts relevant to the limited subject matter identified in the consent order’s expedited discovery provisions,” the attorneys said. The attorneys also said BAM presented numerous other witnesses who Learn more about BAM’s operations, including Erik Kellogg, BAM’s Chief Information Security Officer. The lawyers noted:
“The burdens imposed by these depositions far outweigh their potential benefits, and the discovery sought is disproportionate to the needs contemplated by the consent decree.”
The attorneys also argued that the SEC still had “no evidence to support its unsubstantiated allegations,” meaning client assets had been diverted. The defendants claim that the SEC’s allegations in forming the cross motion are “misleading and false.”
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Lawyers said there was also a “complete disconnect” between the SEC’s “overbroad and abusive approach” and the limited expedited discovery the regulator agreed to in the consent order.
BAM responded shortly after the SEC and Binance agreed to a protective motion that required the parties to submit confidential information under seal.plaintiff and defendant submitted The Sept. 11 joint motion commits to filing confidential and nonpublic information as protected material, limiting access to parties including judges, attorneys, plaintiffs and defendants.
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