The US Securities and Exchange Commission (SEC) lawsuit against Binance Holdings, Binance.US, and Changpeng “CZ” Zhao is nearing its conclusion. Both the plaintiff and defendants have filed a joint status report, indicating that they have met most of the discovery and deposition requirements set by the SEC. The final stages of dispute resolution will involve a potential briefing in April. Here are the key details:
BAM-Related Discovery:
- The SEC has claimed that BAM Management US Holdings and BAM Trading Services (Binance.US) have provided most of the outstanding discovery requests.
- Binance.US has produced 290,000 pages of documents and believes it has fulfilled its obligations under the consent order for expedited discovery.
- BAM intends to file a motion to consider expedited discovery as complete if the SEC continues to request new documents and depositions.
Binance Holdings Discovery and Depositions:
- The SEC will continue to work with Binance to address outstanding discovery requests.
- Binance claims it has fully addressed the SEC’s queries regarding wallet software and custody of BAM customer assets.
- The company will provide non-privileged, responsive communications between Binance and Binance.US employees in early April.
CZ-Related Discovery:
- The SEC has served CZ with limited interrogatories in hopes of reducing or eliminating further discovery requirements.
- However, CZ has not yet responded to the letter.
- CZ plans to address the SEC’s concerns in a letter this week but expressed frustration over the lack of response from the SEC.
Subscribe to our Social Media for Exclusive Crypto News and Insights 24/7!
Next Action Plan:
- The SEC proposes that the parties submit the next status report by April 5.
- Any new disputes will be reported to the court, and the parties will state their positions on whether briefing or a hearing would be helpful to address any issues.
In addition to these updates on the lawsuit, Binance has recently made significant developments amidst increased regulatory scrutiny. The exchange has spun off its $10 billion venture capital arm from its crypto exchange business. This move comes as Binance continues to navigate the legal challenges it faces from the SEC.
In conclusion, the SEC lawsuit against Binance and CZ is progressing towards resolution. The parties have filed a joint status report, indicating that they have fulfilled most of the discovery and deposition requirements. The next steps involve potential briefings and continued discussions with the court. As Binance faces heightened regulatory scrutiny, it has also made significant changes to its business structure. It remains to be seen how these developments will impact the outcome of the lawsuit.
Sources:
- [Joint Status Report](https://storage.courtlistener.com/recap/gov.uscourts.dcd.256060/gov.uscourts.dcd.256060.233.0.pdf)
