A federal judge denied the U.S. securities regulator’s request to investigate Binance US’s technological infrastructure, which was a setback for the government. The top cryptocurrency exchange’s American subsidiary is allegedly not cooperating with the SEC’s investigation, according to the SEC.
A federal judge has denied Mark Meadows' emergency motion for a stay pending appeal. Meadows is trying to move his case from Fulton County to federal court.
— Nick Wooten (@ByNickEWoot) September 13, 2023
U.S. SEC Fails to Secure Court Authorization to Inspect Binance US Software
Securities authorities in the US failed to persuade a judge to provide them instant access to the crypto trading platform Binance US’s software as part of the case against the domestic branch of the largest digital asset exchange in the world, according to Bloomberg.
AF Sec Frank Kendall on Monday: U.S. must be ready for a “kind of war we have no modern experience with” “We’re all talking about the fact that the Air and Space Forces must change, or we could fail to prevent and might even lose a war.”
— Ephemeral (@yawahuguama) September 13, 2023
The SEC noted that since filing suit in June against the business, its worldwide subsidiary, and Binance founder and CEO Changpeng Zhao, it had been difficult to get information from them. The Commission again attempted to compel the company to give more of the necessary information on September 18.
At a hearing on Monday, federal Magistrate Judge Zia Faruqui said he wasn’t “inclined to allow the inspection at this time.” Additionally, he stressed that the SEC should interview more witnesses and submit more specific witness requests.
The SEC has suffered a procedural setback as a result of Faruqui’s decision to refuse the agency instant access to Binance US’s systems. The agency had earlier this year claimed that Binance and Binance US, which were established in 2019 to service U.S. consumers, were not truly independent.
The SEC is interested in looking into the technologies used by Binance US to spot potential connections to the international marketplace. The regulator stresses that it is also crucial to guarantee that the Miami-registered business maintains control over client assets during the legal proceedings.
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