Upcoming Hearing Date Set for Binance and SEC Legal Battle
The ongoing legal dispute between Binance and the US Securities and Exchange Commission (SEC) has taken another turn as Magistrate Judge Zia M. Faruqui has scheduled a hearing date for two important motions. The hearing, set for September 18, 2023, will address Motion 95, the Protective Order, and Motion 102, which seeks to compel and reply in further support of BAM Defendants’ Motion for a Protective Order (Redacted). These motions were filed by BAM Management and BAM Trading Services, affiliates of Binance US.
Former SEC Chief Sheds Light on the Case
John Reed Stark, former Chief of the SEC Office of Internet Enforcement, recently shared insights into the intricacies of the case through a tweet. Stark highlighted Bam Trading, Binance’s US affiliate, and its efforts to prevent the SEC from deposing its CEO and CFO. He pointed out the timing of the CEO’s resignation coinciding with the emergence of potential whistleblowers. Stark also emphasized Binance’s protective order against the SEC, arguing that the commission’s discovery requests were too broad and burdensome.
Binance Vs. SEC Developments
It is important to note that this recent motion is separate from two other significant filings in this case. Firstly, a joint motion from September 11, 2023, where various parties sought a protective order to limit access to sensitive documents. Secondly, the SEC’s motion from August 28, 2023, to file documents under seal accompanied by supportive submissions.
Stark also expressed skepticism about BAM Trading and BAM Management’s request to limit depositions to only four employees and exclude key witnesses. He stated that such a request is unusual based on his extensive experience in the SEC Enforcement Division.
In a dramatic turn of events, BAM’s President and CEO, Brian Shroder, resigned on the same day Binance’s lawyers opposed his deposition by the SEC. Norman Reed, Binance US’s chief legal officer, has reportedly taken over following Shroder’s departure.
Binance US Announces Layoffs Amidst Legal Battle
Additionally, Binance US has announced significant layoffs, cutting over 100 positions, which accounts for one-third of its staff. CEO Changpeng Zhao attributed these layoffs to the SEC’s actions, claiming that they have negatively impacted American jobs and innovation in an attempt to hinder the industry.
Stark speculates that Mr. Shroder may cooperate with the SEC and the US Department of Justice (DOJ) if he fears criminal prosecution. The recent layoffs at Binance could also potentially provide whistleblowers who might be enticed by financial rewards offered by the SEC.
Pivotal Hearing Date Approaching
The upcoming hearing on September 18 is anticipated to be a crucial moment in this case as it will address key motions that could shape the trajectory of the legal battle between Binance and the SEC.
Hot Take: Uncertainty Looms Over Binance-SEC Legal Battle
The ongoing legal saga between Binance and the SEC continues to unfold with new developments. As a crypto reader, you must stay updated on these proceedings as they have significant implications for both parties involved. The upcoming hearing date carries immense importance as it will determine the direction of this legal battle. With layoffs at Binance and the resignation of key personnel, uncertainty surrounds the case. It remains to be seen how this dispute will impact not only Binance but also the wider cryptocurrency industry in terms of regulations and innovation.
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