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Binance Battles SEC in Court, Files for Protective Order: What You Need to Know

Cryptocurrency giant Binance has filed for a protective court order against the U.S. Securities and Exchange Commission (SEC). This move comes amid allegations of burdensome requests and legal battles between the two parties.

Binance logo
Binance logo

Late on Monday, Binance initiated legal action by filing for a protective court order against the U.S. SEC. The crypto exchange accused the regulatory body of making requests for information that was "over broad" and "unduly burdensome."

Details of the Protective Order

In the U.S. District Court of Columbia, BAM Trading, Binance U.S.'s operating company, and BAM Management have indicated that they had already provided enough information to the SEC. The order intends to limit the SEC to four depositions from BAM employees and to dismiss the depositions of BAM's top executives without naming anyone.

June's Lawsuit Against Binance

Back in June, U.S. regulators filed a lawsuit against Binance and CEO Changpeng Zhao, citing 13 charges. Accusations included artificial inflation of trading volumes, misdirection of customer funds, failure to restrict U.S. customers, and misleading investors about market surveillance controls.

Binance’s Response to the Allegations

In the filing, Binance emphasized that the SEC has not found evidence suggesting misuse or dissipation of customer assets. They stressed that they have cooperated fully with the SEC's inquiries.

SEC's Opposition to Binance's Motion

The SEC has turned down BAM's proposals to limit its requests significantly and is against the motion for a protective order, according to the court filing. Both Binance and the SEC have not responded immediately to requests for comment.