Binance, one of the world’s leading cryptocurrency exchanges, has taken a stand against the U.S. Securities and Exchange Commission (SEC), accusing the regulator of launching an unjustifiable investigation. Here is what you need to know.
On August 14, Binance filed a motion for a protective order, hitting back at the SEC’s deposition notices and discovery requests. The exchange expressed its frustration over what it called a “fishing expedition” by the regulator.
The Exchange’s Argument
Binance argues that the SEC’s demands are way out of line, seeking to investigate every nook and corner of the exchange’s asset custody practices without limitations. Communications dating back to November 2022 and requests to depose six employees, including CEO Brian Shroder & CFO Jasmine Lee, are cited as examples of this overreach.
Binance’s CEO and CFO Under the Microscope?
SEC filed a proposed order to question Binance’s CEO and CFO, but Binance defended that they don’t possess unique firsthand knowledge relevant to the case. The Exchange believes that less intrusive discovery methods are available.
Summary of Binance’s Protective Motion
- Binance asserts that it worked in good faith to respond to the SEC’s demands.
- The exchange has already provided extensive information about customer assets.
- The SEC’s continued push for discovery is labelled as going beyond the scope of the consent order.
- Binance seeks to protect its CEO & CFO from deposition.
- The SEC’s actions are deemed an inappropriate fishing expedition.
An excerpt from the motion filed by Binance
Binance’s legal move is bold and marks a new chapter in the ongoing legal battle between regulatory bodies and cryptocurrency entities. With an abundance of documents and strong arguments put forth, Binance has made its stance clear: the SEC’s current approach is not acceptable and they will fight back!
