U.S. court has rejected the SEC’s plea to inspect Binance U.S. documents, providing a small win for the crypto exchange.
Binance U.S., the American arm of the world’s largest crypto exchange, has been under scrutiny since the SEC initiated a lawsuit against it, leading to a decline in trading volume and key executive departures. The SEC’s request for inspection was related to accessing documentation and communication with Binance U.S.’s custodial service providers.
The commission argued that the custody platform, Ceffu, was associated with Binance and was used to transfer funds of U.S. customers out of the country, violating a prior agreement. Binance U.S. argued that the SEC’s request was excessive. While the court denied the SEC’s plea, it also requested Binance U.S. to provide more documentation and expressed concerns about the exchange’s control over its assets.
