The US SEC’s action against Binance has been continuing since June, with Binance Holdings Ltd facing fines of up to $4.3 billion.
Former CEO Changpeng Zhao was forced to resign and is now on bond. However, Binance.US, previously known as BAM Trading Services, is still battling the SEC in court.
The Washington D.C. court ordered the two parties to collaborate on the discovery process, but the SEC claims that the two sides have reached an impasse.
According to the watchdog, Binance.US refused to allow agency personnel to inspect its in-house software, stating that it was programmed and provided no actual insight into its inner workings.
The SEC further doubts BAM’s exclusive access to private keys, citing BHL’s establishment and continued possession of these keys in an Amazon Web Services environment.
However, the SEC recognizes that BAM has been cooperative overall, supplementing its answers as needed. Representatives of Binance.US indicated that they have responded to all of the SEC’s inquiries, including some that were “exceptionally broad.”
They claim to have gone above and above their institutional requirements by declining to provide information on trade secrets that have no bearing on the ownership of client assets.
BAM demands that the discovery process be ended so that the court can make a decision about BAM’s affairs.
