BAM Trading, responsible for Binance.US, has taken action against the U.S. Securities and Exchange Commission (SEC), asserting that the SEC has overstepped its bounds in its inquiries.
Background on Binance’s Legal Challenges
In June, the SEC lodged a lawsuit against Binance and its founder, Changpeng Zhao. The major point of contention was the allegation that Binance misled its customers and siphoned off funds to another investment entity owned by Zhao.
As of this Monday, Binance has taken a significant step to defend itself by filing for a protective order against the SEC. The primary motive? Binance believes that they’ve handed over ample information to the regulator, negating the need for further probes.
BAM Trading, which serves as the backbone of Binance.US, along with BAM Management, emphasized their discontent with the SEC’s stance. They pointed out that the SEC hasn’t been accommodating or even considered limiting its requests. According to a recent court filing, BAM voiced concerns about the SEC’s apparent misuse of the discovery provisions present in the Consent Order.
“The SEC has declined BAM’s proposals or to meaningfully limit its requests. The SEC’s position is unreasonable and part of a broader pattern of the SEC abusing the discovery provision of the Consent Order.”The Court Filing, as per The Block.
To further illustrate their cooperative attitude, BAM highlighted that they’ve even presented four individuals for depositions. Among these are two individuals who are most knowledgeable about the management and safety of customer assets.