SEC versus Binance: Ongoing Discovery Disputes Revealed in Joint Status Report

The SEC vs. Binance Holdings Ltd. Lawsuit

A joint status report was filed on January 25, 2024, in the ongoing legal battle between the Securities and Exchange Commission (SEC) and Binance Holdings Ltd. The report focuses on discovery-related matters involving BAM Management US Holdings Inc., BAM Trading Services Inc., and Binance, collectively termed as “BAM” in the lawsuit.

Current Status of the Case

The report is divided into two parts, with Binance/BAM’s counsel stating that they have fulfilled their obligations under the Consent Order, while the SEC argues that crucial aspects of discovery remain outstanding. Discrepancies in document production and the need for additional information are key points of contention.

Discovery-Related Matters

The SEC is reviewing BAM due to production gaps, leading to disputes over the scope of depositions and the SEC’s rights for more testimony. A virtual presentation by BAM aimed to address the SEC’s concerns on January 23, 2024. However, disputes regarding the scope of the inspection and logistics continue.

Proposed Next Steps

Binance has proposed a technical fact witness, raising disagreements over the deposition’s scope. Depositions of Zhao and other Binance witnesses are under consideration, with discussions ongoing. Defendants plan to propose a protective order to address confidentiality concerns, with a draft expected to be sent to the SEC shortly.

What’s Next?

The defendants suggest submitting the next status report on February 15, 2024, with the SEC requesting a status hearing shortly after. The timing of a future status conference will be determined in conjunction with the February 15 status report.

Hot Take

The Securities and Exchange Commission’s lawsuit against Binance Holdings Ltd. continues to unfold as the two parties clash over discovery-related matters, including document production, depositions, and confidentiality concerns. With the next status report scheduled for February 15, 2024, the legal battle is far from over, and stakeholders should stay tuned for further updates.