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Binance Files Protective Order Against SEC, Citing Overbroad and Burdensome Information Requests

Date: August 15, 2023

According to (Reuters) Leading cryptocurrency exchange Binance has taken a legal step by filing for a protective court order against the U.S. Securities and Exchange Commission (SEC), alleging that the regulator’s information requests are excessive and overly burdensome.

In a recent court submission to the U.S. District Court of Columbia, BAM Trading, the operating entity of Binance U.S., along with BAM Management, stated that they have already furnished substantial information to the regulatory body.

The sought-after protective order aims to impose limitations on the SEC’s actions, including a request for only four depositions from BAM employees. Additionally, it proposes the exclusion of depositions from BAM’s CEO and CFO, although specific names were not mentioned.

Neither Binance nor the SEC have issued an immediate response to the request for comments.

The legal tussle between Binance and the SEC came into the spotlight in June when U.S. regulators filed a lawsuit against the exchange and its CEO, Changpeng Zhao, accusing them of orchestrating a “web of deception.” The lawsuit encompassed 13 allegations, which ranged from artificially inflating trading volumes to misdirecting customer funds, failing to restrict U.S. clients from the platform, and misleading investors about market surveillance controls.

As per the filing, Binance emphasized that there is a lack of evidence indicating any misuse or dissipation of customer assets. Despite this, the SEC has shown resistance to BAM’s attempts to meaningfully limit its information requests and has opposed the motion for a protective order, according to the submitted document.

Source: https://www.reuters.com

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