Binance Nears Completion of Discovery and Depositions in SEC Case

The lawsuit against Binance Holdings and CEO CZ nears completion as discovery and depositions progress. Binance and SEC are working on resolving SEC demands, with most requirements met. Joint status report filed, indicating progress in meeting discovery and deposition obligations.

Discovery and Depositions Nearing Completion

Is Binance Closing in on Resolving SEC Discovery Demands?

The U.S. Securities and Exchange Commission's (SEC) lawsuit against Binance Holdings, Binance.US, and CEO Changpeng "CZ" Zhao is approaching its final stages of discovery and depositions. The defendants have substantially complied with the SEC's discovery requests, with a joint status report and potential briefing scheduled for April.

Binance and SEC File Joint Status Report

On March 22, the plaintiffs and defendants filed a joint status report, indicating that Binance.US and CZ have met most of the SEC's discovery and deposition requirements.

BAM-Related Discovery

The SEC acknowledged that Binance.US and BAM Trading Services have provided the majority of the outstanding discovery requests, with some details still pending from Binance Holdings. The SEC will continue to review BAM's production of documents but noted that "it is premature to determine whether expedited discovery as to BAM is complete."

Binance.US asserted that it has produced over 290,000 pages of documents and believes it has fully complied with the consent order regarding expedited discovery. If the SEC continues to request additional discovery documents and depositions, BAM intends to file a motion seeking a court determination that expedited discovery is complete.

Binance Holdings Discovery and Depositions

The SEC and Binance continue to negotiate outstanding discovery requests. The SEC's requests include information on Binance's search parameters and privilege logs for withheld documents. Both parties have agreed to finalize discovery and depositions.

Binance claims to have fully addressed the SEC's inquiries regarding wallet software and the custody of BAM customer assets. The company will conduct additional searches and provide non-privileged communications between Binance and Binance.US employees in early April. The parties agreed to resolve any remaining disputes on these topics through the court.

CZ-Related Discovery

The SEC informed the court that it has served CZ with a set of limited interrogatories, hoping to reduce or eliminate further discovery requirements from him. However, CZ has yet to respond.

CZ, on the other hand, claims to have addressed the SEC's concerns in a letter this week. However, he noted that the SEC has not responded to his previous letter and that his deadline is April 2.

Next Action Plan

The SEC proposes that the parties submit the next status report by April 5. The parties will inform the court of any new disputes and provide their views on whether a briefing or hearing would be beneficial in resolving outstanding issues.

Binance Navigates Regulatory Challenges

Amid the ongoing SEC lawsuit, Binance has made significant strides to address regulatory concerns. The exchange recently spun off its $10 billion venture capital arm, Binance Labs, from its core crypto exchange business.