Federal Judge of the United States orders protection in case Binance vs. Sec
The judge in charge of supervising the case requested that the cryptocurrency exchange be protected
A federal judge overseeing the civil case between the United States Securities and Exchange Commission (SEC) and the cryptocurrency exchange Binance, Binance.US, and Binance’s CEO Changpeng Zhao (CZ), has issued a motion for a protective order to go before a first-instance judge.
In an August 16 filing in the US District Court for the District of Columbia, Judge Amy Berman Jackson stated that she would refer a motion for a protective order against the SEC, filed by Binance.US’s lawyers, to Magistrate Judge Faruqui for resolution. Binance.US’s legal team submitted the motion on August 14, claiming at the time that the order was necessary to shield the company from the SEC’s “fishing expedition” during the presentation of evidence.
Before Jackson’s decision, the former head of the SEC’s Internet Enforcement Office, John Reed Stark, speculated on X that the matter would be referred to a first-instance judge before the commission opposed it legally or publicly. As of this edition’s closing, the SEC had not filed any motion in response to Binance.US’s request.
“While each case is different, in most significant financial investigations and civil actions, the SEC tends to demand excessive information in their requests for documents, testimonies, statements, interrogations, etc.,” Stark asserts.
The crux of the order was that the SEC had requested information from Binance.US related to custody, security, and availability of user assets. The company claimed that the information was not relevant to the SEC’s case, which was filed in June for alleged unregistered securities offerings.
Binance and CZ are facing a lawsuit from the Commodity Futures Trading Commission, for which they filed dismissal motions in July. The United States Department of Justice is also reportedly investigating the global exchange for allegedly allowing Russian entities to use its platform.
K. Tovar
Source: Cointelegraph
(Reference image source: Bermix Studio, Unsplash)
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