The US SEC and defendants Binance, Binance.US and CEO Changpeng Zhao filed a joint status report. The parties clarified their positions in the report. Here are the details…
Joint status report of Binance and SEC
Plaintiff Securities and Exchange Commission (SEC) and defendants Binance Holdings, Binance.US, and CEO Changpeng Zhao (CZ) explained their positions in a joint status report to the District Court for the District of Columbia. Magistrate Zia Faruqui continues to make efforts to keep things going smoothly in the case. Despite this, the SEC and Binance’s stance on document discovery and statements is not going smoothly.
The defendants filed their joint position report with the U.S. SEC late on Oct. 11, according to court filings. Despite the court’s order on September 18 to work together on various discovery requests and depositions, neither side was able to reach any conclusion on the discovery requests. However, BAM (Binance.US) and the SEC approved the next statement for October 18. Additionally, several more will follow throughout the remainder of October and November.
SEC claims that the exchange did not comply with the demands!
The SEC says BAM produced only about 382 documents. It also notes that the agency remains problematic in its ability to produce the remaining documents it requested under the consent order. BAM says the demands the SEC has made since the Sept. 18 hearing are unreasonable. Binance argues that the SEC’s approach is inconsistent with the consent decree. In this context, BAM makes the following statement:
Since the hearing, the SEC has required BAM to accept nine additional depositions, including the deposition of six current shareholders, one former shareholder, BAM’s President of Product, and one deposition under a federal rule. The SEC also submitted over 60 document requests to BAM.
Additionally, BAM claims to have licensed its wallet custody software from BHL. In addition, he claims that he has no relationship with Ceffu. Binance.US agreed to provide evidence in this regard. But it will not perform a broad search without any date restrictions.
Positions of Binance and CEO CZ
The SEC sent new requests for documents and depositions to the exchange and its CEO, CZ. The regulatory body, the cryptocurrency exchange and CZ will come together to discuss these demands. As you follow from Kriptokoin.com, the exchange and CZ previously asked the court to dismiss the case, claiming that the securities regulator exceeded its authority.
The crypto community is awaiting an important hearing on October 12 for some developments in the case. Meanwhile, the SEC and Binance are requesting that the court enter a protective order.
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