Courts Hand SEC Half an L in Binance US Case

The Breakdown

Blockworks

Business, Investing

4.8 • 806 Ratings

🗓️ 20 September 2023

⏱️ 14 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

NLW catches up on the latest legal details of the SEC's battle against the zombie exchange Binance US. The judge recently denied an SEC request to compel Binance US to produce specific information, and NLW explores how big a deal it was and where it leaves things in the case now. Enjoying this content? SUBSCRIBE to the Podcast: https://pod.link/1438693620 Watch on YouTube: https://www.youtube.com/nathanielwhittemorecrypto Subscribe to the newsletter: https://breakdown.beehiiv.com/ Join the discussion: https://discord.gg/VrKRrfKCz8 Follow on Twitter: NLW: https://twitter.com/nlw Breakdown: https://twitter.com/BreakdownNLW

Transcript

Click on a timestamp to play from that location

0:00.0	Welcome back to The Breakdown with me, NLW.
0:09.3	It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.
0:18.3	What's going on, guys? It is Tuesday, September 19th. And today, we are talking about
0:24.0	Binance and their SEC court decision yesterday. Is it significant? Is it just kicking the can
0:29.9	down the road? We will go through all of that. Before we do, however, if you are enjoying the
0:34.7	breakdown, please go subscribe to it, give it a rating, give it a review, or if you want to dive deeper into the conversation, come join us on the
0:41.0	Breakers Discord. You can find a link in the show notes or go to bit.ly slash breakdown pod.
0:46.0	Well, friends, it is a day that ends in why, so there is, of course, another Binance story.
0:52.1	Binance had a fairly big day in court on Monday in their legal battle with
0:55.6	the SEC. Leading into the hearing, the allegations and speculation had started to reach a fever
1:00.9	pitch. The SEC had begun to hone in on the theory that Binance US did not and never had
1:06.2	exclusive control over customer assets. That, if true, would be a big deal, as Binance had always
1:11.7	maintained, that U.S. customer assets were strictly segregated from the international exchange.
1:16.7	Indeed, they used this argument to defend an SEC injunction shortly after the legal
1:20.4	proceedings commenced in June. If granted, the injunction would have frozen assets at Binance
1:25.2	U.S., which would have functionally been a death sentence for the domestic exchange. In deciding that injunction, the court ordered the parties to
1:31.7	come back with an agreement that they could both live with rather than making a decision on their own.
1:36.2	As part of those consent orders, Binance agreed that they would ensure that only local U.S.
1:40.2	staff would have access to customer assets. However, as the SEC dug further into their
1:45.2	investigation, they claimed that Binance US used a custody system called Seifu, Cefu, which they viewed
1:52.0	as intimately linked to Binance International. Seifu was launched under the name Binance
1:56.3	custody in December 2021. It was renamed in February of this year around the same time that rumors of an in-depth
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Blockworks, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Blockworks and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.