Binance.US Files Motion to Limit SEC’s Discovery Requests
Binance.US has filed a motion seeking a protective order to restrict the Securities and Exchange Commission’s (SEC) broad discovery requests in its case against the cryptocurrency exchange. The SEC had previously obtained a consent order allowing limited expedited discovery related to the custody and availability of customer assets. However, Binance.US claims that the SEC’s requests have gone beyond the agreed scope and amount to a “fishing expedition.”
Key Points:
- The SEC’s discovery requests seek every single document related to customer assets in Binance.US’s possession, which the company argues is overbroad and unreasonable.
- Binance.US claims that the SEC is demanding communications and deposition testimony on unrelated topics, including from executives with little knowledge of the custody issues central to the case.
- The company has already provided hundreds of documents, offered depositions from knowledgeable employees, and taken steps to ensure assets are in U.S. custody.
- Binance.US argues that the SEC’s requests reflect a pattern of abuse of the discovery provision and that there is no evidence of misused or mishandled customer assets.
- The company suggests that the SEC first depose the employees responsible for asset custody who have deeper knowledge before deposing top executives.
Hot Take
Binance.US’s motion to limit the SEC’s discovery requests highlights the company’s frustration with what it perceives as overreach by the agency. By claiming that the SEC is conducting an inappropriate “fishing expedition” and making unreasonable demands, Binance.US aims to protect its executives from burdensome depositions and ensure the focus remains on the merits of the case. The outcome of this motion could have significant implications for the ongoing legal battle between Binance.US and the SEC.
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