Binance seeks protective order against SEC’s ‘fishing expedition’

Binance has asked a court for a protective order against the Securities and Exchange Commission (SEC) over what the crypto exchange claims is a “fishing expedition” from the regulator.

In an Aug. 14 court filing, Binance put forward a motion for a protective order following deposition notices and discovery requests from the SEC.

“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 exchange wrote. 

Binance is seeking a protective order against the SEC, claiming that they are conducting a “fishing expedition”.https://t.co/NquMV8ShNK

— Molly White (@molly0xFFF) August 15, 2023

Binance claimed the SEC is demanding it produce communications dating back to November 2022 for “dozens of topics — many of which have nothing to do with customer assets.”

It also took issue with the SEC’s request that the exchange make six of its employees and officers available for depositions including its CEO Changpeng “CZ” Zhao.

“Now, the SEC is also demanding depositions of BAM’s most senior executives despite 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 for depositions,” it argued.

This is a developing story, and further information will be added as it becomes available.