Binance vs SEC: Joint Status Report Uncovers Disagreements in Discovery Process

Binance Holdings Ltd. and the U.S. Securities and Exchange Commission (SEC) are still embroiled in their legal battle, with a joint status report released on January 25, 2024. The report focuses on the complexities surrounding BAM Management US Holdings Inc., BAM Trading Services Inc., and Binance, collectively referred to as “BAM.”

BAM’s defense argues that they have fulfilled their obligations according to the Consent Order. However, the SEC disagrees and raises concerns about unresolved document production and the need for additional information.

The SEC’s investigation into BAM is a result of gaps in document production, leading to debates about the scope of depositions and the SEC’s request for further testimony.

BAM attempted to address the SEC’s concerns with a virtual presentation on January 23, 2024. However, disagreements persist regarding the scope and logistics of the inspection. Discussions are ongoing about BAM potentially providing information related to Part IV of the Consent Order.

Since the last report, neither Binance nor its CEO, Zhao, have produced any documents.

The introduction of a technical fact witness by Binance has led to debates about the scope of the deposition. The situation becomes more complicated with discussions about deposing Zhao and other Binance witnesses.

To address concerns about confidentiality, the defendants plan to propose a protective order, with a draft expected to be sent to the SEC soon.

The defendants suggest submitting the next status report on February 15, 2024, with the SEC requesting a subsequent status hearing. The timing of the next status conference will align with the release of the February 15 report.

For those closely following the legal drama, mark your calendars for the February 15, 2024, status report.

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