Crypto News– Binance.US has taken a step to protect its interests by filing a motion seeking a protective order against the Securities and Exchange Commission (SEC) in its ongoing legal battle. The motion aims to narrow down the scope of discovery sought by the SEC, claiming that the regulatory body’s requests have gone beyond the limits outlined in the consent order previously agreed upon.
Binance US Requests Protective Order Against SEC’s ‘Fishing Expedition’
Back in June, Binance US, operating under BAM Trading Services and BAM Management US Holdings, reached a consent order with the SEC following concerns raised about the security of customer digital assets held by the exchange. This consent order allowed for “limited expedited discovery” concerning the custody and availability of customer assets.
However, Binance US argues that the SEC’s discovery requests have turned into what it considers an unwarranted and excessive “fishing expedition.” The company contends that the SEC has served broad and unreasonable discovery requests, essentially seeking every document in their possession related to customer assets. Binance.US further asserts that the SEC is using the consent order as a basis for an all-encompassing investigation into the company’s asset custody practices without any clear limitations.
The heart of the matter lies in the fact that the SEC is allegedly requesting a wide range of communication records and deposition testimony from Binance.US executives on various topics unrelated to customer assets. The company highlights that even its CEO and CFO, who possess limited knowledge about the custody issues central to the case, are being asked to provide information on matters that are tangential.
Binance.US emphasizes its willingness to cooperate in good faith by responding to the SEC’s requests, providing hundreds of documents, facilitating depositions from employees who possess relevant knowledge about asset security, and taking proactive steps to ensure assets remain under U.S. custody.
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