Binance files order against SEC’s ‘fishing expedition’

Binance lodges a petition against the SEC, arguing that the regulator’s wide-reaching demands are undue and exceed the scope of their case. 

On August 14, Binance filed a petition for a protective court order with the United States Securities and Exchange Commission (SEC). It argued the regulator’s demands for exchange communications impose an undue burden.

Binance emphasized in the filing that the SEC’s discovery efforts resemble a “fishing expedition,” exceeding the case’s scope. They maintain that their requests for information, which even covered client assets, have been made in good faith, despite the SEC’s primary concerns being unrelated to asset custody.

The exchange criticized the SEC’s focus on depositions involving top executives not closely familiar with asset custody practices. This follows Binance’s compliance with a June court order probing the security and management of customer funds. The company already proposed depositions with senior staff directly overseeing client assets — a proposal the SEC seems to have overlooked.

This legal tussle traces back to the SEC’s allegation against Binance for operating without proper securities registration, mirroring a similar case against Coinbase.

Despite a provisional agreement letting Binance operate in the US, tensions between the two entities remain.