Binance Requests Protective Order Against SEC’s Information Requests
Binance has filed a protective order with the US District Court of Columbia, seeking limitations on the US Securities and Exchange Commission’s (SEC) information requests. The exchange argues that the SEC’s requests are “overbroad” and “unduly burdensome” and have no relevance to customer assets. Binance also requests that its CEO and CFO be exempt from depositions. The SEC has refused previous requests to limit the provision of information.
Key Points:
- Binance claims that the SEC’s information requests are disproportionate to the needs of the case and unrelated to the custody practices of BAM Trading, Binance’s US business.
- BAM Trading criticizes the SEC’s request for communications related to customer assets, stating that it is unclear what subset of communications would satisfy the SEC’s demands.
- Binance faces criticism on social media for seeking exemption for its CEO and CFO from depositions, with some calling for the arrest of CEO Changpeng Zhao.
- The SEC previously sued Binance Holdings, Binance.US, and Zhao for alleged commingling of user funds and operating as an unregistered broker-dealer and clearinghouse.
- The exchange confirmed the delisting of several trading pairs and the conversion of delisted coins to stablecoins deposited in user accounts.
Hot Take: Binance’s request for a protective order reflects its dissatisfaction with the SEC’s information requests and attempts to limit its CEO and CFO’s involvement in the case. The exchange’s actions have sparked controversy and further scrutiny from critics and the crypto community.
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