The ongoing legal saga between Binance and the United States Securities and Exchange Commission (SEC) has taken a contentious turn, with recent court filings shedding light on persistent conflicts over evidence production and the arrangement of witness testimonies. The SEC’s case against the cryptocurrency exchange, particularly its U.S. arm, Binance.US, has raised concerns regarding the custody and liquidity of assets, leading to a back-and-forth between the regulatory body and Binance.
Evidence Production Disputes
A joint status report filed on January 25 reveals that the SEC insists on the existence of “important aspects of discovery from BAM” (BAM Trading Services, Binance.US’s parent company) that remain outstanding. The regulator’s extensive requests for evidence have sparked contention, particularly regarding custody practices and asset liquidity. BAM asserts full compliance with document production requirements outlined in the consent order, urging the court to acknowledge their fulfillment of obligations and consider expedited discovery as complete for BAM.
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Witness Testimonies and Scope of Investigation against Binance
The court documents also highlight ongoing disputes over witness examinations, specifically naming requests for testimony from “BAM’s former CEO and CFO,” presumably Brian Shroder and Jasmine Lee. BAM contends that the SEC has deposed many witnesses during expedited discovery and challenges the necessity for additional depositions. Another point of contention involves discussions over the possible examination of Binance co-founder Changpeng Zhao, with disagreements on the scope, timing, location, and number of depositions.
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Conclusion
As the legal battle between Binance and the SEC intensifies, disputes over evidence production and witness testimonies take center stage. The SEC’s pursuit of detailed information from Binance regarding custody and liquidity practices reflects a rigorous examination of the exchange’s operations. The ongoing disagreements over witness depositions, including those of key figures like Changpeng Zhao, underscore the complexity of the case. With the next status report due by February 15 and Zhao’s sentencing scheduled for February 23, the cryptocurrency community eagerly awaits further developments in this high-stakes legal confrontation.
