Crypto Titan’s Court Move
In a recent twist to the ongoing legal tussle, Binance, the renowned cryptocurrency exchange, has approached the US District Court of Columbia for a protective order. This move is a response to what the exchange perceives as extensive and onerous information demands from the U.S. Securities and Exchange Commission (SEC).
Contentions from Binance U.S. Operating Firm
BAM Trading, the driving force behind Binance’s U.S. operations, alongside BAM Management, has indicated in court documents that they’ve already been cooperative. According to them, the data and details demanded by the SEC have been adequately supplied.
Limiting the Reach
Binance’s plea prominently includes a request to constrict the SEC’s scope of inquiry. The exchange wishes to confine the commission to a maximum of four depositions from individuals employed at BAM. Interestingly, the application specifically urges the court to exempt both the CEO and CFO of BAM from being deposed. The names of these top executives remain undisclosed in the legal documents.
The Backstory
This isn’t the first time Binance has found itself under the regulatory spotlight in the U.S. Earlier in June, allegations were made against Binance and its CEO, Changpeng Zhao. Authorities asserted that the platform was involved in a series of deceptive activities. Some of the charges listed encompassed accusations of manipulated trading volumes, unauthorized diversions of client funds, non-compliance with U.S. customer restrictions, and purportedly giving false assurances regarding their market oversight mechanisms.
However, in defense, the court documents clearly state: “There remains an absence of tangible proof indicating any misappropriation or mishandling of user assets.”
Regulator’s Stance
The SEC, on its part, has so far not shown inclination towards compromising on its data requisition. The regulatory body has reportedly turned down BAM’s suggestions for a more focused information request. Moreover, it seems the SEC stands firmly against Binance’s current plea for a protective order.
Both Binance and the SEC have remained tight-lipped, with neither party providing immediate comments on the matter.
