Ongoing Discovery Disputes Unveiled in Joint Status Report: SEC Vs Binance

In the ongoing legal battle between the Securities and Exchange Commission (SEC) and Binance Holdings Ltd., a joint status report was filed on January 25, 2024, outlining the current state of the case. The report focuses on discovery-related matters involving BAM Management US Holdings Inc., BAM Trading Services Inc., and Binance, collectively referred to as “BAM.”

The report is divided into two parts:

BAM-Related Discovery:
Binance/BAM’s counsel argues that they have fulfilled their obligations under the Consent Order, but the SEC claims that there are still significant outstanding issues regarding discovery. Disputes arise from discrepancies in document production and the need for additional information. The SEC is particularly concerned about the scope of depositions and its right to more testimony.

To address the SEC’s concerns, BAM held a virtual presentation on January 23, 2024. However, disputes regarding the inspection’s scope and logistics persist. BAM is considering providing information related to Part IV of the Consent Order, and discussions on this matter will continue.

Binance/Zhao-Related Discovery:
Since the last status report, neither Binance nor Zhao has produced any documents. Binance proposed a technical fact witness, leading to disagreements about the scope of the deposition. Discussions are ongoing regarding the possibility of depositions for Zhao and other Binance witnesses.

The defendants plan to propose a protective order to address confidentiality concerns. A draft of the order is expected to be sent to the SEC soon.

What’s Next?
The defendants suggest submitting the next status report on February 15, 2024, with the SEC requesting a status hearing shortly after. The timing of a future status conference will be determined in conjunction with the February 15 status report.

Stay tuned for the next status report on February 15, 2024, for more updates and detailed information.

Tags: Crypto Regulations