Binance vs. SEC: Magistrate Judge Faruqui Rules on Protective Order

In the legal drama between cryptocurrency giant Binance US and the Securities and Exchange Commission (SEC), Magistrate Judge Zia M. Faruqui has marked September 18 on the calendar. This day will witness the hearing of two crucial motions filed by Binance US’s affiliates, BAM Management and BAM Trading Services.

The Dueling Motions on the Table

The courtroom is set to resonate with arguments surrounding Motion 95 and Motion 102. While the former, known as the Protective Order, seeks to shield certain sensitive information, the latter aims to push for further backing of BAM’s plea for the said Protective Order. This motion has captured everyone’s attention, given its redacted nature. 

On the day in question, Judge Faruqui will not only consider the standpoints presented by Binance’s affiliates but also weigh in on the SEC’s perspective. The commission is expected to put forth its case opposing the protective order and advocating for the right to file specific documents confidentially.

Corporate Shuffles Amidst the Legal Storm

Adding a twist to the tale, BAM’s head honcho, Brian Shroder, opted to step down from his role as President and CEO. This move coincided with the very day Binance’s legal team endeavored to block the SEC from questioning him. But that’s not all. Binance US has trimmed its workforce substantially, letting go of a third of its employees. CEO Changpeng Zhao didn’t mince words when he squarely blamed the SEC’s endeavors, lamenting the adverse impact on American employment and technological advancements.

The crypto community keenly follows this lawsuit, with experts weighing in with their analyses. John Reed Stark, who once helmed the SEC Office of Internet Enforcement, recently took to X to decode the situation. He spotlighted the conspicuous timing of the CEO’s departure amid possible whistleblower concerns. Stark also shed light on Binance’s defensive stance against the SEC’s inquiries, suggesting the commission might be pushing the envelope with their extensive discovery demands.