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Binance filed a motion requesting a protective order against the US Securities and Exchange Commission (SEC), claiming the regulator is conducting a \u201cfishing expedition\u201d instead of seeking the narrow and \u201climited\u201d discovery authorized by the Consent Order to ensure the security and availability of customer assets.<\/p>\n
The motion asserts that Binance has already provided the SEC with the necessary information.<\/p>\n
According to the filing<\/a>, Binance called the SEC\u2019s approach \u201ctroubling and inappropriate,\u201d arguing that BAM\u2019s asset custody practices have \u201cnothing to do\u201d with the underlying claims in this case.<\/p>\n This is in reference to the communications dating back to November 2022 that the SEC has demanded to be produced in court. For the uninitiated, BAM Trading is the holding company of Binance.US and BAM Management.<\/p>\n Binance claimed that BAM implemented numerous measures in accordance with the Consent Order to further ensure that customer assets are secure and have already produced necessary information about customer assets to the SEC.<\/p>\n Pointing to the SEC\u2019s failure to uncover any trace of evidence indicating any misuse or mishandling of BAM customer assets, Binance urged the court to grant a protective order to restrict the regulator from conducting a maximum of four depositions of BAM employees.<\/p>\n As part of the order, Binance is seeking a ban on the SEC from raising questions during these depositions that fall beyond the boundaries defined by the Consent Order.<\/p>\n Furthermore, the filing also said the depositions of BAM\u2019s CEO and CFO should be disallowed, along with any requests for communications about different subjects.<\/p>\n \u201cBAM has worked in good faith, but the SEC has been steadfast in its belief that the Consent Order gives it carte blanche to investigate every aspect of BAM\u2019s asset custody practices without any discernible limitation whatsoever.\u201d<\/p>\n<\/blockquote>\n Current US regulations do not accommodate digital assets, which has led the SEC to use its own interpretations to oversee the sector. The approach was met with severe backlash. The US regulators sued Binance and CEO Changpeng \u2018CZ\u2019 Zhao in June this year for allegedly operating a \u201cweb of deception.\u201d<\/p>\n Allegations<\/a> against the cryptocurrency exchange include actions like inflating trading volumes artificially, redirecting customer funds, neglecting to prevent US customers from using the platform, and providing false information to investors regarding its market surveillance measures.<\/p>\n\n
Binance vs. SEC<\/h2>\n
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