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The US court declined the request of the SEC to inspect the Binance. US software. This decision complicates the whole scenario between the SEC and the digital trading platform, it started in the second quarter of 2023 when the SEC accused Changpeng Zhao (CZ) who is the CEO of Binance of regulating an unlicensed securities exchange.
During the court hearing on September 18, the judge decided not to grant the SEC’s request to inspect Binance US software and the SEC didn’t demand additional documents.
The Securities and Exchange Commission filed charges against Binance and its founder, Changpeng ZhaoCZ, in the second quarter of 2023, accusing them of operating an unregistered securities exchange. As a result, the Securities and Exchange Commission was actively working to ensure that US assets of Binance.US customers remained in the US.
However, since that time the Securities and Exchange Commission has expressed its disappointment in Binance.US for failing to produce any relevant documents or being unable to verify their compliance with proposed expedited discovery conditions. It has also proved difficult for the SEC to obtain information from Binance.US, its global subsidiary Binance Holdings Ltd., and it’s CEO Changpeng Zhao.
The Securities and Exchange Commission requested on Monday that a federal magistrate judge be allowed to examine Binance.US' technological infrastructure and order the company to comply with requests for information. Instead of immediately ruling in favor of either party, the judge stressed the importance of cooperation, urging both sides to work together on their discovery requests.
In one of the Agency's most widely known Digital Assets cases, refusal to immediately gain access to the Securities and Exchange Commission constitutes an administrative setback. The SEC expressed disappointment with Binance.US, arguing that the company had failed to provide adequate and deficient documents as well as limited numbers of witnesses available for questioning.
During the court hearing on September 18, the judge decided not to grant the SEC’s request to inspect Binance US software and the SEC didn’t demand additional documents.
The Securities and Exchange Commission filed charges against Binance and its founder, Changpeng ZhaoCZ, in the second quarter of 2023, accusing them of operating an unregistered securities exchange. As a result, the Securities and Exchange Commission was actively working to ensure that US assets of Binance.US customers remained in the US.
However, since that time the Securities and Exchange Commission has expressed its disappointment in Binance.US for failing to produce any relevant documents or being unable to verify their compliance with proposed expedited discovery conditions. It has also proved difficult for the SEC to obtain information from Binance.US, its global subsidiary Binance Holdings Ltd., and it’s CEO Changpeng Zhao.
The Securities and Exchange Commission requested on Monday that a federal magistrate judge be allowed to examine Binance.US' technological infrastructure and order the company to comply with requests for information. Instead of immediately ruling in favor of either party, the judge stressed the importance of cooperation, urging both sides to work together on their discovery requests.
In one of the Agency's most widely known Digital Assets cases, refusal to immediately gain access to the Securities and Exchange Commission constitutes an administrative setback. The SEC expressed disappointment with Binance.US, arguing that the company had failed to provide adequate and deficient documents as well as limited numbers of witnesses available for questioning.
