Global cryptocurrency company, Binance, made a bold move seeking refuge under a protective court order against the US Securities and Exchange Commission.
This audacious maneuver comes in direct response to what Binance terms the regulator’s relentless pursuit of information through “overbroad” and “unduly burdensome” requests.
In an emphatic legal salvo, BAM Trading, the operational nucleus of Binance US, along with BAM Management, submitted a court filing to the US District Court of Columbia.
The filing unequivocally asserts that the regulatory entity’s demands have been thoroughly met, with ample information already furnished.
The essence of this protective order lies in its endeavor to curtail the SEC’s latitude.
Foremost among its clauses is a cap on the number of depositions from BAM employees, limited to a count of four.
Strikingly, the deposition of BAM’s chief executive and its chief financial officer is categorically singled out for exemption, identities undisclosed.
As the legal battle continues, Binance, maintained its characteristic silence, refraining from immediate comment.
In a mirror image of this silence, the SEC opted to withhold commentary on the unfolding legal imbroglio.
The tangle between Binance and US regulators has reached fever pitch this year.
In a seismic blow, the SEC launched a scathing lawsuit against Binance and its CEO, Changpeng Zhao, in June, hiting them with an array of 13 charges.
The litany of allegations included claims of orchestrating a “web of deception,” inflating trading volumes through artificial means, siphoning off customer funds, misleading investors about market surveillance controls, and allegedly permitting US customers access to its platform in violation of regulations.
Unflinchingly, Binance’s recent court filing held its ground, affirming, “The SEC has still yet to identify any evidence suggesting that customer assets were misused or dissipated in any way.”
The battle lines are distinctly drawn. The filing divulges that the SEC has consistently rebuffed BAM’s propositions for a meaningful truncation of its information requests, vehemently opposing the plea for a protective order.
This skirmish is by no means Binance’s solitary clash with US regulatory authorities this year.
In a parallel courtroom confrontation, the cryptocurrency exchange, along with its resolute CEO Zhao, took on the US Commodity Futures Trading Commission back in July.
The motion filed sought the dismissal of a complaint from the CFTC, which had accused Binance and its executives of violating the Commodity Exchange Act.
The Commission further contended that the exchange operated what it characterized as an “illegal” platform, coupled with a purportedly insubstantial compliance program.
