Binance US, the American branch of the world’s largest cryptocurrency exchange, Binance, has received a major victory. A US District Judge has rejected the SEC’s request for an inspection of the exchange’s documents. This comes as the company is facing intense scrutiny due to a lawsuit initiated by the US Securities and Exchange Commission.
The SEC had sought access to Binance US’ records and communications with its custodial service providers, alleging that Ceffu, a custody platform, is actually an entity associated with the exchange. This was seen as a breach of the exchange’s prior agreement with the SEC.
In response to the SEC’s request, Binance US argued that the request was overly intrusive and burdensome. Judge Zia Faruqui agreed and rejected the SEC’s request, however, the court did require that Binance US furnish additional documentation and expressed doubts about the exchange’s ability to maintain control over its assets.
The news comes as the company continues to face scrutiny and a decline in trading volume. It is yet to be seen how the SEC will respond to the ruling and whether the company will be able to maintain its operations in the US.