Binance Files For Protective Order Against SEC – On Monday, August 14th, the cryptocurrency exchange Binance took the step of submitting a legal request to the US Securities and Exchange Commission (SEC) for a protective court order. The exchange stated that the SEC’s information demands were excessive in scope and unnecessarily onerous.
BAM Trading, which operates Binance US, along with BAM Management, made this assertion in a court document filed in the US District Court of Columbia. The document also noted that the group had already furnished the regulator with satisfactory information.
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The requested court order aims to impose specific restrictions on the SEC. One of these limitations involves permitting only four depositions of BAM employees, while excluding the depositions of BAM’s CEO and CFO, although no individuals are explicitly named.
Back in June, Binance and CEO Changpeng Zhao were sued by US regulators. The lawsuit included 13 allegations, contending that the company engaged in deceptive practices. Among the charges were accusations of inflating trading volumes artificially, redirecting customer funds, inadequately preventing US customers from accessing the platform, and providing misleading information to investors regarding its market monitoring mechanisms.
The filing said: “The SEC has still yet to identify any evidence suggesting that customer assets were misused or dissipated in any way.” The document stated that the SEC has rejected BAM’s suggestions to significantly narrow down its inquiries and is in disagreement with the motion for a protective order.