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Binance Under Fire: SEC Files Strong Reply In Compelling Case Amidst Employee Exodus

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In the ongoing legal battle between the US Securities and Exchange Commission (SEC) and Binance, the SEC has filed a robust reply supporting its Motion to Compel.

The agency emphasizes the increasing exodus of the exchange’s employees, who potentially hold crucial asset custody and control information.

SEC Raises Alarm Over Employee Exodus At Binance

According to the SEC filing, Binance.US’s alleged opposition to the motion exemplifies the “complexities” the SEC has faced in navigating this case.

Despite initially agreeing to expedited discovery provisions outlined in the Consent Order, the exchange is now attempting to reevaluate its “scope and purpose,” according to the SEC.

The SEC argues that Binance.US’s representations have been undermined by their documents and “inconsistent statements,” necessitating actual evidence to be obtained through expedited discovery.

The SEC accuses BAM (Binance.US parent company) of providing “inconsistent information,” slow-rolling document production, and obstructing access to categories of information that could shed light on the custody of customer assets.

Per the filing, recent depositions reveal the existence of responsive documents and information that BAM either failed to search for or withheld without valid justification.

Furthermore, the SEC highlights the urgency of expedited discovery in light of the accelerating exodus of Binance.US employees, including its CEO, who may possess vital information regarding asset custody and availability.

Allegations Of Withholding Relevant Documents

Per the filing, the SEC firmly asserts that Binance.US has not fulfilled its discovery obligations in response to the SEC’s requests for production and interrogatories.

BAM’s claim of fulfilling its obligations by producing all documents within its possession, custody, and control is disputed by multiple witnesses who have id

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Author: Ronaldo Marquez

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