Binance steps up efforts to fight broader SEC investigation
Binance steps up efforts to fight broader SEC investigation
Cryptocurrency exchange Binance has filed a court motion seeking a protective order against the U.S. Securities and Exchange Commission (SEC) and its disclosure requests, which would allow it to resist depositions of its employees.
The motion, filed on August 14, states that despite Binance's cooperation, the SEC is pursuing a broad investigation into the exchange's asset custody practices without apparent justification.
In addition, Binance has emphasized to the court that the consent order does not give the regulator unlimited authority to investigate its asset custody practices, according to Coincu.
The exchange also insists that the CEO and CFO should not be interviewed by the SEC because they have no relevant knowledge.
The SEC's request for Binance to provide information about its operations in November 2022, unrelated to client assets and outside the scope of the investigation, has alarmed the exchange. Binance also strongly objected to the SEC's intention to question six of its employees, including CEO Changpeng Zhao, saying it was beyond the scope of the regulator's authority.
It is worth noting that in March, Binance and its CEO were already facing legal action from the Commodities and Futures Trading Commission, which accused them of illegally soliciting U.S. clients through an international subsidiary.
In June, the SEC also filed a lawsuit against Binance and Changpeng Zhao, accusing them of 13 violations of U.S. law, including setting up a 'web of deception'.
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