United

Bone

<p>The saga between Binance, the colossal name in cryptocurrency exchanges, and the hawk-eyed United States Securities and Exchange Commission (SEC) unfolds with more twists than a prime-time thriller. The courtroom drama, replete with legal jargon and high stakes, has both parties locking horns over the production of evidence and the deposition of key witnesses, a recent court filing reveals.<a href="https://cointelegraph.com/news/court-status-report-confirms-binance-sec-odds" rel="noopener noreferrer nofollow" target="_blank"> </a></p>
<h2 class="wp-block-heading" id="the-bone-of-contention">The Bone of Contention</h2>
<p>The heart of this legal tussle lies in the SEC’s insistence that Binance, through its parent entity BAM Trading Services, hasn’t fully opened its kimono when it comes to disclosing all necessary documents. The regulator’s magnifying glass is hovering over how Binance.US manages custody and liquidity of assets, hinting at suspicions of a clandestine maneuver akin to <a href="https://www.cryptopolitan.com/judge-ftx-investigation-should-move-faster/" data-type="post" data-id="451944" rel="noopener noreferrer nofollow">FTX’s</a> infamous backdoor that played fast and loose with customer assets.</p>
<p>BAM’s legal eagles, however, are standing their ground. They argue that they’ve ticked all the boxes in terms of document production as per the consent order and have urged the court to tip its hat to BAM for fulfilling its obligations. They paint a picture of an overzealous SEC, whose investigative tentacles are reaching far beyond the agreed-upon boundaries, delving into the minutiae of BAM’s custody protocols, past and present.</p>
<h2 class="wp-block-heading" id="witness-stand-standoff">Witness Stand Standoff</h2>
<p>Adding more fuel to the fire is the dispute over the depositions of BAM’s ex-brass, including former CEO Brian Shroder and CFO Jasmine Lee. BAM’s stance is clear: the SEC’s had its fill with a dozen depositions and asking for more is overkill. Yet, the prospect of Binance co-founder Changpeng Zhao taking the stand adds another layer of intrigue, with disagreements swirling around the specifics of his deposition.</p>
<p>Zhao’s legal odyssey has seen its own share of drama. Despite stepping down as CEO in the wake of a hefty $4.3-billion mea culpa with U.S. regulators, Zhao’s freedom hangs by the thread of a $175-million bond. His request for a humanitarian leave to the UAE was shot down by the court, underlining the perceived flight risk posed by his vast wealth and international ties.</p>
<p>Judge Richard Jones, in denying Zhao’s travel plea, underscored the gravity of the risk, pointing to Zhao’s “enormous wealth” and lack of U.S. anchors as red flags. The court’s skepticism isn’t unwarranted, given Zhao’s privileged status in the UAE and his family’s residence there.</p>
<p>The standoff between Binance and the SEC is more than a legal skirmish; it’s a litmus test for the cryptocurrency industry’s regulatory landscape. With each court filing and denied request, the contours of this battle are drawn sharper, underscoring the tension between innovation in the digital currency space and the regulatory frameworks striving to keep pace.</p>
<p>As the next chapters of this legal epic unfold, with Zhao’s sentencing on the horizon and another status report due imminently, the stakes for both Binance and the SEC couldn’t be higher. The outcome of this confrontation could set precedents that ripple through the cryptocurrency world, influencing how exchanges operate and how regulators police this tumultuous market.</p>
<p>In the end, this isn’t just a story about legal documents and courtroom strategies. It’s a narrative about the future of finance, the balance between freedom and regulation, and the relentless pursuit of accountability in the digital age. The Binance-SEC saga is far from over, and its reverberations will be felt far and wide, in courtrooms and crypto wallets alike.</p>

Binance and SEC still in contentious battle, but there’s a turn

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