Binance.US has lodged a court filing requesting a protective order against the United States Securities and Exchange Commission (SEC).
Binance.US Seeks A Protective Order
Binance.US has lodged a court filing requesting a protective order against the United States Securities and Exchange Commission (SEC), alleging that the regulator's discovery requests amount to a "fishing expedition."
Binance.US contends that the SEC's demands for extensive and excessive paperwork regarding customer assets are unreasonable in response to a court order from June. Binance.US alleges that the SEC's requests go beyond the parameters of their complaint and Consent decision, which initially concentrated on Binance's custody, security, and accessibility of customer assets, even if it complies in good faith with the June decision.
Binance.US emphasized that neither the asset custody practices nor any misuse of customer assets had been proven by the SEC. The exchange has voiced opposition to the SEC's demand that six of its staff, including CEO Changpeng "CZ" Zhao, be removed from their positions, claiming that these senior officials lack special first-hand expertise in asset security and custody.
The exchange seeks a protective order that would limit the SEC's depositions to four specific employees, excluding the CEO and CFO. It also aims to constrain questioning to matters strictly related to the original order and to prevent inquiries about topics unrelated to customer assets.
Binance is facing legal action from both the SEC, accusing it of operating an unregistered securities exchange and selling unregistered securities, and the Commodity Futures Trading Commission, against which the exchange is attempting to secure a dismissal.