Binance Files for Protective Order Against SEC Over ‘Fishing Expedition’
- Crypto exchange Binance has filed a motion for a protective order against the United States SEC.
- The SEC demanded documents dating back as far as November 2022 from the crypto exchange.
- The firm claims that these documents have “nothing to do with customer assets.”
- The DoJ is looking to take legal action against Binance but is hesitant due to the toll it would take on users.
The world’s largest crypto exchange by trading volume, Binance, has filed for a protective order against the United States Securities and Exchange Commission (SEC) over something that the digital asset trading platform calls a “fishing expedition” from the regulator. The securities regulator has filed several lawsuits against the trading platform over its services in the US.
As per an August 14 filing, Binance filed a motion for a protective order against the SEC following deposition notices and discovery requests from the regulator. The crypto exchange said that the regulator is demanding several documents from the firm dating back as far as November 2022 for “dozens of topics — many of which have nothing to do with customer assets.”
“BAM has worked in good faith, but the SEC has been steadfast in its belief that the Consent Order gives it carte blanche to investigate every aspect of BAM’s asset custody practices without any discernible limitation whatsoever,” the leading cryptocurrency exchange wrote.
Additionally, Binance also pointed out the SEC’s demands that it did not agree with, which include making six of its employees and officers available for depositions, including its co-founder and CEO Changpeng Zhao, also known as CZ in the crypto space.
Interestingly, the exchange recently announced getting approved in El Salvador, the first country to adopt Bitcoin (BTC) as legal tender, in September 2021. Binance confirmed that it will rely on its new license to continue its expansion in Latin America.
“Now, the SEC is also demanding depositions of BAM’s most senior executives, despite the fact that they do not have unique firsthand knowledge about the facts surrounding the security, custody, and transfer of customer assets, and the employees who do have been offered depositions,” Binance further stated.
As reported earlier by BitcoinWisdom, the United States Department of Justice (DOJ) is considering prosecuting Binance But is hesitant due to the possible impact on customers. The federal agency is worried that a legal action would trigger a bank run on the exchange, similar to Sam Bankman-Fried’s FTX.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
