A cryptocurrency exchange, Binance, has filed a motion for a protective order against the U.S. Securities and Exchange Commission (SEC). This motion comes in response to deposition notices and discovery requests that Binance received from the SEC.
As per the filing of August 14, Binance is requesting a protective order in response to deposition notices and discovery requests from the SEC.
A protective order is a legal order that restricts the use or disclosure of certain information during legal proceedings to prevent harm or unfair advantage to one of the parties involved.
BAM Trading, which owns Binance.US, along with BAM Management, has asked the court for a “protective order.” This order is about requests from the SEC for depositions and discovery.
BAM calims that the SEC is trying to gather a lot of information without a clear goal, rather than sticking to the specific and limited investigation allowed by the Consent Order, which is meant to check if customer assets are safe and accessible right now.
BAM wants the court to make a decision to protect them. They’re asking the court to limit the SEC to only interviewing four BAM employees and to stop the regulator from asking questions during these interviews that are not related to the specific matters mentioned in the consent order. Also, BAM wants the court to prevent the interviews of their CEO and CFO.
In June, the SEC took legal action against Binance, and its founder, Changpeng Zhao. The SEC accused Binance of breaking the rules related to securities in the U.S. They claimed that the crypto exchange didn’t tell the truth to its customers and moved money to a different investment fund that belongs to Zhao.