Binance Files for Protective Order against SEC, Claims Requests for Information are “Over Broad” and “Unduly Burdensome”
August 15, 2023
Crypto exchange Binance has filed for a protective court order against the U.S. Securities and Exchange Commission (SEC), stating that the regulator’s requests for information are “over broad” and “unduly burdensome.” The court filing was made by BAM Trading, Binance U.S.’s operating company, and BAM Management, asserting that they have already provided sufficient information to the SEC.
Filed in the US District Court of Columbia, the protective order seeks to limit the SEC’s actions, including restricting the regulator to only four depositions from BAM employees. It also aims to drop the deposition of BAM’s chief executive and chief financial officer, although no names were mentioned in the filing.
As of now, Binance and the SEC have not responded to requests for comment regarding this matter.
The filing comes after U.S. regulators sued Binance and CEO Changpeng Zhao in June, accusing them of operating a “web of deception” and listing 13 charges against the company. The charges include allegations of artificially inflating trading volumes, diverting customer funds, failing to restrict U.S. customers from the platform, and misleading investors about its market surveillance controls.
In response, the filing states, “…the SEC has still yet to identify any evidence suggesting that customer assets were misused or dissipated in any way.”
The SEC has reportedly declined BAM’s proposals to limit its requests and is reportedly opposing the motion for a protective order, according to the filing.
Binance and CEO Changpeng Zhao have been at the center of controversy in recent months. The crypto exchange has faced increased regulatory scrutiny globally as authorities aim to address concerns surrounding investor protection and fraud prevention in the industry.
Reporting by Lavanya Ahire in Bengaluru; Editing by Kim Coghill and Sharon Singleton