Binance Files for Protective Order Against SEC, Seeks to Limit Regulator’s Request for Information
Binance Files for Protective Order Against SEC, Seeks to Limit Regulator’s Request for Information

Cryptocurrency exchange Binance filed a protective court order with the U.S. Securities and Exchange Commission late Monday, saying the regulator’s request for information was “overly broad” and “overly onerous.”

Binance’s U.S. operating companies, BAM Trading and BAM Management, said in a court filing in U.S. District Court for Columbia that the group had provided sufficient information to regulators.

Among other things, the protective order seeks to limit the SEC to submitting only four testimony from BAM employees and to drop testimony from BAM’s CEO and its chief financial officer, without naming anyone.

Binance did not immediately respond to a request for comment, while the SEC declined to comment.

U.S. regulators sued Binance and its CEO Changpeng Zhao in June, accusing it of operating a “deceitful network,” listing 13 charges including claims the company artificially inflated transaction volumes, misappropriated client funds and failed to restrict U.S. customers from using its platform and misleading investors about its platform. Market surveillance and control.

“The SEC has not found any evidence that customer assets were misused or lost in any way,” the filing said.

The SEC rejected BAM’s offer to meaningfully limit its request and objected to the motion for a protective order, the filing said.

Binance has had some run-ins with U.S. regulators this year. Back in July, Binance and CEO Zhao filed a motion to dismiss a U.S. Commodity Futures Trading Commission (CFTC) complaint against the cryptocurrency exchange.

The CFTC sued Binance, Zhao and former chief compliance officer Samuel Lim in March, accusing them of violating the Commodity Exchange Act and certain related federal regulations and operating what the regulator called an “illegal” exchange and ” false” compliance program.

© Thomson Reuters 2023

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