Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Binance has submitted a motion seeking a protective order against the US Securities and Exchange Commission (SEC), alleging that the regulator is engaging in a “fishing expedition” rather than pursuing the specific and “limited” discovery permitted by the Consent Order to safeguard the security and accessibility of customer assets.
The motion contends that Binance has already supplied the SEC with the required information.
Binance Pursues Protective Order Against SEC
The filing indicates that Binance described the SEC’s tactics as “troubling and inappropriate,” asserting that BAM’s asset custody procedures are “unrelated” to the core allegations in this matter.
This refers to the communications requested by the SEC that date back to November 2022, which the agency seeks to have presented in court. For context, BAM Trading serves as the parent company of Binance.US and BAM Management.
Binance stated that BAM has enacted several measures in line with the Consent Order to further guarantee the security of customer assets and has already provided the SEC with pertinent information regarding these assets.
ADVERTISEMENT
Related Posts
Highlighting the SEC’s inability to find any evidence suggesting misuse or mishandling of BAM customer assets, Binance urged the court to issue a protective order to limit the regulator to a maximum of four depositions of BAM employees.
As part of the order, Binance is requesting a prohibition on the SEC from posing questions during these depositions that exceed the limits established by the Consent Order.
Additionally, the filing stated that depositions of BAM’s CEO and CFO should be prohibited, along with any requests for communications on unrelated topics.
“BAM has acted in good faith, but the SEC has maintained its stance that the Consent Order provides it with unrestricted authority to investigate every facet of BAM’s asset custody practices without any clear limitations.”
Binance vs. SEC
Existing US regulations do not adequately address digital assets, prompting the SEC to apply its own interpretations to regulate the industry. This approach has faced significant criticism. Earlier this year, US regulators filed a lawsuit against Binance and CEO Changpeng ‘CZ’ Zhao, accusing them of operating a “web of deception.”
Accusations against the cryptocurrency exchange include practices such as artificially inflating trading volumes, misdirecting customer funds, failing to prevent US customers from accessing the platform, and providing misleading information to investors regarding its market surveillance practices.
SPECIAL OFFER (Sponsored) Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.
