The SEC Faces Efforts to Access Binance.US Software

The SEC, Securities and Exchange Commission, has requested immediate access to the software of Binance.US. Zia Faruqui, a federal magistrate judge, denied the request of SEC to conduct an urgent investigation into the software platform of Binance.US. The SEC pressured Binance to provide detailed information and increased executive availability for depositions.

Judge Faruqui stated that he was reluctant to grant the inspection request. Bloomberg reported that the SEC would craft more specific discovery requests and consult with a larger range of witnesses. Since filing a lawsuit on June 5 for suspected participation with unregistered securities, the SEC has experienced difficulties getting information from Binance.US.

Judge Faruqui’s decision to deny the SEC access to Binance.US’s software and records represents an unanticipated hurdle in the regulator’s ongoing action against the exchange. The SEC claimed that Binance.US was non-cooperated with the inquiry, noting that BAM Trading, Binance.US’s holding company, had only provided 220 discovery documents.

According to the Securities and Exchange Commission, many documents need clearer screenshots and unsigned, undated paperwork. In addition, the regulator noted that BAM chose to depose just four witnesses out of four that it deemed appropriate, declining to submit other key witnesses.

SEC Lawsuit Hits Binance.US Trading Volume

Binance.US has suffered greatly due to the dispute with US regulators. The exchange has experienced an enormous decrease in trading volume after the SEC filed its case in June, cut its banking connections, stopped dealing in US dollars, and made staff reductions. The company also experienced significant employee reductions, and CEO Brian Shroder left.

In June, the Security and Exchange Commission filed a lawsuit against CEO Changpeng Zhao, Binance.US, and Binance Holdings Ltd. Since then, the Security and Exchange Commission has encountered challenges getting essential details from the US Exchange. Recently, the regulator requested authorization to examine the software of Binance.US and order the exchange to provide information.

The Securities and Exchange Commission is concerned about the cryptocurrency exchange’s security of its user’s assets. In addition, the regulator asserts that conducting a thorough investigation is essential to discover potential connections with the exchange’s foreign branch.

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