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SEC Demands Unsealing of Documents in Lawsuit Against Binance, Sparks Disagreement

Picture Source: BeInCrypto

The Securities and Exchange Commission (SEC) has escalated its legal battle against BAM Trading Services, known as Binance in the United States, by demanding the release of sealed documents. The SEC views these documents as crucial for its investigation, while Binance’s lawyers strongly contest their relevance and fairness.

SEC’s Interest in Binance

The SEC has a keen interest in service providers that Binance may have collaborated with, particularly in areas such as wallet custody software. However, BAM, doing business as Binance, has been perceived as unresponsive to the regulator’s requests for information. Binance, on the other hand, argues that it is acting in the best interests of its customers by refusing to comply with what it views as excessive and overreaching demands.

Unsealing of Documents

The SEC’s frustration over Binance’s alleged non-cooperation led to the sealing of crucial documents. This made it challenging for the SEC to prove its case. However, on September 15, a federal judge ruled in favor of the SEC, ordering the unsealing of 16 documents and the partial unsealing of nine others. These unsealed documents shed light on Binance’s legal strategies to keep its internal matters confidential and out of reach of regulators, media, and the public.

BAM’s Rejection of SEC Demands

One of the most significant documents unsealed by the court order is “Exhibit 4,” filed by BAM’s lawyers at Wilmer Cutler and Milbank. This filing, spanning 31 pages, vehemently rejects the SEC’s demands. BAM’s lawyers argue that the SEC has overstepped its jurisdiction and made vague, overbroad, and even “oppressive” requests.

BAM’s objections to the SEC’s demands range from claims of regulatory overreach to concerns about attorney-client privilege, trade secrets, and personal information. The exchange firmly believes it is under no obligation to provide certain documents to the SEC.

Deep Disagreements

Exhibit 4 reveals profound disagreements between BAM and the SEC, not just on procedural grounds but also on matters of fact. The two sides have differing views on the events and facts relevant to the lawsuit. The filing highlights BAM’s objections to requests that assume the existence of facts or events that, according to BAM, did not occur.

Read More: US Judge Orders Unsealing of SEC Documents in Binance US Lawsuit

Conclusion

The unsealing of documents in the SEC’s lawsuit against Binance has brought to the forefront the significant disputes between the two parties. These documents may have implications both inside and outside the courtroom as they provide insights into the SEC’s case against Binance and the exchange’s legal strategies to protect its internal matters from public scrutiny. The outcome of this legal battle will likely be closely monitored by the cryptocurrency community and regulators alike.

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