Binance vs SEC: Hearing in Washington, DC, over BAM motion to compel starts now

Binance CEO Changpeng Zhao played it cool in the hours leading up to the hearing in District of Columbia District Court on Sept. 18, posting a picture of branded merchandise with a cheery message about the company’s interns. 

He is likely to pay close attention to the court proceedings, however, as the disagreement between the United States Securities and Exchange Commission (SEC) and Binance.US is at a high pitch after a week of adversarial filings.

Magistrate Judge Zia Faruqui is holding a hearing on the SEC’s motion to compel, which Binance has characterized as “unduly burdensome.” The SEC said that Binance is uncooperative, despite agreeing to a consent order on discovery in the SEC’s case against it for unregistered securities operations and other allegations.

How can I get these?

The interns sends me pics to tweet, but not the actual merchandise… ‍♂️ pic.twitter.com/kNXYuks4Wf

— CZ Binance (@cz_binance) September 18, 2023

Custody of Binance.US customer assets is one of the big questions being put forward by the regulator. SEC Office of Internet Enforcement chief John Reed Stark noted in an X post that Ceffu acknowledges being legally known as Bifinity in its “Terms of Use” page. Bifinity has been identified as part of Binance Group, Stark added. If that is the case, Binance.US customer assets are in practice custodied by Binance and in danger of being siphoned off, observers add. 

SEC Lashes Out At Binance, Threatening To Seek A Contempt Order

The litigation war between the U.S. Securities and Exchange Commission (SEC) and Binance continues to heat up exponentially.

Specifically, thanks to some limited “judicial unsealing,” (albeit amid lots of… pic.twitter.com/QhrifkACL4

— John Reed Stark (@JohnReedStark) September 16, 2023

Binance.US had agreed that only U.S. staff would ha

This is a developing story, and further information will be added as it becomes available.