Global: Binance Seeks Protective Order Against SEC, Citing Regulatory Overreach

Cryptocurrency exchange Binance has taken legal action by filing for a protective court order against the U.S. Securities and Exchange Commission (SEC), claiming that the regulator’s information requests are excessively broad and burdensome.

In the filing submitted to the U.S. District Court of Columbia, BAM Trading, the operator of Binance U.S., stated that the group has already provided substantial information to the SEC. The requested protective order aims to restrict the SEC’s actions, including limiting the number of depositions to four from BAM employees. Additionally, the order seeks to exempt BAM’s CEO and CFO from depositions, although specific names were not disclosed.

Both Binance and the SEC have not issued immediate comments in response to this development.

Earlier in June, the SEC filed a lawsuit against Binance and its CEO, Changpeng Zhao, accusing them of running a “web of deception.” The lawsuit comprises 13 charges, including allegations of inflating trading volumes, mishandling customer funds, failing to prevent U.S. customers from using its platform, and providing false information about its market surveillance practices.

The filing from Binance argues that despite the accusations, the SEC has not presented any evidence indicating misuse or dissipation of customer assets. The SEC has reportedly rejected BAM’s attempts to narrow down its information requests and opposes the motion for a protective order, as per the filing.