In a proposal submitted yesterday Binance USclaimed that the SEC was carrying out its rhetoric about consolidation of user funds without evidence.
The litigation between Binance and the SEC continues as the data in the SEC’s hands weaken. The SEC claimed that Binance had combined client assets on Binance US with assets on the global exchange. However, Binance US stated that this claim has no basis and that the SEC has made misleading statements in the case.
https://t.co/hSHrrlF7o7 and Its Legal Team Allege SEC Issued Misleading Statements in Lawsuit https://t.co/mLKGneRSOu
— CZ 🔶 Binance (@cz_binance) June 22, 2023
Binance US Targets SEC’s Disclosures
Binance’s legal team claimed that the perception carried out by the SEC has no basis. Gurbir Singh Grewal, Director of the SEC’s Enforcement Division, said that Binance and its CEO, CZ, are free to move about user assets.
According to the SEC, Binance is co-executing its global assets with the assets of its US arm. However, Binance US announced that these statements are unfounded and that Binance US does not cooperate with the global.
The loopholes in the SEC’s answers were noted in a court document released to the press the other day. The court asked the SEC whether BAM assets were moved overseas. The response from the SEC to the court was surprising. The SEC said the assets were not moved overseas and they did not see any money flowing out of the US.
The SEC argues in court that while Binance does not make overseas transfers, it has the freedom to do so.
However, Binance legal team stated that the SEC misled the court and put Binance in a difficult position. The exchange’s legal team said that the SEC has no evidence that Binance has mixed client assets or moved assets as intended.
If this appeal from the Binance legal team is upheld by the court, the SEC’s hand may be weakened.
