Binance.US, a cryptocurrency exchange operated by BAM Trading Services, has pushed back against the U.S. Securities and Exchange Commission (SEC) in a legal dispute over customer assets.
The exchange claims that the SEC’s requests for information and depositions are “unreasonable” and “unduly burdensome.”
The SEC filed a motion to compel and reply on Sept. 12, seeking additional details from Binance.US about how it handles the custody and transfer of customer assets.
The SEC also wants to depose BAM CEO Brian Shroder and chief financial officer Jasmine Lee, who are allegedly involved in the day-to-day management of the exchange.
However, BAM attorneys argue that the SEC’s requests are “overly broad, unduly burdensome” and “beyond the scope of the consent order.”
They state that the SEC has not provided any evidence to support its claims that Shroder and Lee have relevant knowledge or involvement in the matter.
According to a CoinTelegraph report, BAM attorneys also contend that the SEC’s demand for certainty is unrealistic and unfair.
The legal battle between the SEC and Binance.US comes after the parties agreed on a protective motion on Sept. 11, which requires them to file confidential information under seal.
The motion restricts access to sensitive and non-public information to authorized parties such as the judge, attorneys, plaintiffs and defendants.