Judge Denies SEC’s Request To Access Binance.US Tech Stack
Monday's ruling means the SEC faces delays in gaining full access to Binance.US's core infrastructure.
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In the ongoing Binance.US case, a federal judge today denied the US Securities and Exchange Commission’s (SEC) request to access the crypto firm’s technology infrastructure. Binance.US lawyers argued that the SEC’s request for documents was “overbroad.”
“[I’m not] inclined to allow the inspection at this time,” said Federal Magistrate Judge Zia Faruqui during a hearing, proposing the SEC formulate a more targeted request and interview more witnesses.
The SEC had filed for expedited discovery, a legal process to obtain information quickly before the normal discovery process begins, in its lawsuit against Binance. Binance.US has been accused of not cooperating with the SEC investigation, according to court filings unsealed last week.
The SEC complaint alleges that Binance.com and Binance.US should have registered as an exchange, broker-dealer, and clearing agency. The regulator alleges the companies operated an unlicensed securities exchange and earned at least $11.6 billion in fees from U.S. customers since July 2017.
Judge Faruqui moved the next hearing to October 12.
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