Judge asks Binance.US, SEC to simmer down in dispute over documents

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By BitcoinWiki News

Key Takeaways:

– Binance Holdings Limited and the Securities and Exchange Commission (SEC) are encouraged to work together by a D.C. district judge.

– The SEC has accused BAM, the company behind Binance.US, of delaying the production of documents related to customer assets.

– Binance.US has argued that the SEC’s document requests are excessively broad and burdensome.

– The judge urges both parties to set aside previous conflicts and cooperate in providing the required information.

– The SEC has requested information on customer asset custody, disaster recovery policies, control of crypto wallets, and BAM’s financial statements.

– BAM has agreed to provide its general ledger as of a mutually agreed upon date.

– The SEC has also requested information on Ceffu, which is believed to control customer assets.

– The SEC previously sued Binance and its founder for violating federal securities laws and misrepresenting Binance.US oversight.

– A joint hearing is scheduled for October 12, with a joint status report due by October 10.


Title: D.C. District Judge Urges Collaboration Between Binance.US and SEC in Customer Asset Investigation

Section 1: SEC and Binance.US Face Conflict Over Document Production
– The Securities and Exchange Commission (SEC) has accused Binance.US (BAM) of delaying the production of requested documents.
– Binance.US argues that the SEC’s document requests are overly broad and burdensome.

Section 2: Judge Calls for Cooperation and Compromise
– Judge Zia Faruqui of the U.S. District Court for the District of Columbia encourages Binance Holdings Limited and the SEC to work together.
– He urges both parties to put past disagreements aside and collaborate on finding a solution.

Section 3: SEC’s Requests for Information
– The SEC is seeking specific details about how customer assets are handled, including disaster recovery policies, control of crypto asset wallets, and financial statements, such as the general ledger.
– Binance.US agrees to provide its general ledger but has contested several of the SEC’s requests as too broad or burdensome.

Section 4: Focus on Ceffu and Misrepresentation Allegations
– The SEC is also interested in gathering information on Ceffu, a rebranded Binance entity believed to have control over customer assets.
– The SEC previously sued Binance and its founder, Changpeng “CZ” Zhao, for alleged violations of federal securities laws and misrepresentation of Binance.US oversight.

Conclusion: Collaborative Efforts and Hearing Date Set
– Both sides have agreed to a hearing on October 12 and the submission of a joint status report by October 10.
– The aim is to find common ground and resolve the SEC’s concerns regarding customer asset custody.

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