Binance’s U.S. Exchange Bucks SEC’s Document Requests Amid Investigation

Binance’s U.S. entity is pushing backmost against regulators’ requests for records pertaining to its concern practices, intensifying a ineligible tug-of-war implicit the company’s interior documents, a Monday tribunal filing shows.

In the filing, BAM Trading’s lawyers alleged the U.S. Securities and Exchange Commission’s papers requests are “overbroad” and excessively overmuch of an “inconvenience” for the speech to honor. The SEC is requesting the documents to physique its lawsuit against BAM, which it sued successful June for allegedly operating an unregistered securities exchange.

“BAM objects to the [SEC’s] requests to the grade that they are vague, ambiguous, overbroad, lacking successful particularity oregon oppressive,” BAM’s lawyers wrote successful the filing.

The SEC has requested a wide scope of documents from BAM, from records of the company’s handling of lawsuit assets to statements attesting to the company’s reserves and wide fiscal health. But, those requests person been duly ignored, the regulator alleged.

One of the requests was tied to the exchange’s alleged usage of a custodying work called Ceffu to determination U.S. customers’ funds overseas successful usurpation of the firm’s statement to refrain from doing so.

BAM’s lawyers, however, alleged those requests were “unduly burdensome,” forcing BAM to instrumentality connected “significant expense[s],” according to the filing. In addition, immoderate of the documents are either not successful the exchange’s possession oregon autumn “outside the scope” of what is pertinent to the SEC’s investigation, the lawyers alleged.

It is communal for firms nether probe by national agencies to contradict requests for accusation connected the grounds that they are excessively wide oregon cumbersome for their staff. And, portion the pushback is not ever successful, it tin make important delays successful a case.

Still, regulators person not yet shown signs of letting up connected their demands. Earlier Monday, the SEC filed a ailment alleging that BAM had “slow-rolled tiny productions of documents and information, and stonewalled connected full categories of information” to hinder the agency’s probe into the exchange’s custodying of lawsuit assets.