Binance Files Motion for Protective Order Against SEC
Binance, the largest cryptocurrency exchange in the world, has filed a motion requesting a protective order against the United States Securities and Exchange Commission (SEC). The company claims that it has fully cooperated with the regulator thus far but argues that some of the SEC’s requests are outside the scope of its current inquiry. Binance refers to the SEC’s actions as a “fishing expedition” and accuses the regulator of misusing the discovery provision of the Consent Order. The company also raises concerns about the SEC’s demands for extensive communications and depositions of senior executives who do not have firsthand knowledge of the relevant facts. Binance asks the court to limit the SEC to four depositions and block requests for communications on various topics.
Main Points:
– Binance files a motion for a protective order against the SEC, claiming it has fully cooperated with the regulator.
– The company accuses the SEC of conducting a “fishing expedition” and misusing the discovery provision of the Consent Order.
– Binance raises concerns about the SEC’s demands for extensive communications and depositions of senior executives.
– The company asks the court to limit the SEC to four depositions and block requests for communications on various topics.
– Binance maintains that customer assets are safe and secure and that there is no evidence suggesting misuse or dissipation.
Binance Asserts the Safety of Customer Assets
Binance has responded to the SEC’s allegations of commingling and diverting customer assets by stating that it maintains clients’ fiat currency in segregated accounts separate from corporate funds. The company asserts that customer assets are safe, secure, and sufficient to cover any claims or liabilities. Binance points out that the SEC has yet to provide any evidence suggesting that customer assets were misused or dissipated. The company maintains that the relief sought by the SEC has already been provided in the form of confirmation of the safety and sufficiency of customer assets.
Hot Take:
Binance’s motion for a protective order against the SEC highlights the company’s frustration with what it sees as excessive and unreasonable requests from the regulator. By filing this motion, Binance aims to limit the scope of the SEC’s inquiry and protect its senior executives from unnecessary depositions. The company also emphasizes the safety and security of customer assets, challenging the SEC to provide evidence of any misuse or dissipation. This legal battle between Binance and the SEC will likely have significant implications for the crypto industry and how regulators approach cryptocurrency exchanges in the future.
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