BAM Trading, Binance U.S.’s operating company, and BAM Management sought a protective order against the U.S. Securities and Exchange Commission’s (SEC) “troubling and inappropriate” abuse of its information requests, according to an Aug. 14 court filing.

BAM stated that the SEC wants it to produce “all communications” from Nov. 2022 from at least six employees and executives. According to the firm, this request cover dozens of topics—many of which have nothing to do with customer assets.

Besides that, the financial regulator wants to depose at least six of its employees and officers, including its chief executive officer and chief financial officer.

In the filing, BAM described the SEC’s requests as a “fishing expedition” and revealed that it has worked in good faith to meet some of the demands of the financial regulator.

However, it noted that these requests are “overbroad and unreasonable,” adding, “Courts do not tolerate ‘fishing expeditions,’ discovery abuse, and inordinate expense involved in overbroad and far-ranging discovery requests.”

It stated that the SEC’s approach had failed to provide evidence that it had “misused or mishandled” its customers’ assets, and the regulator’s case had nothing to do with its asset custody practices.

BAM further noted that its attempt to get the SEC to limit its discovery demands had failed as the regulator had “been steadfast in its belief that the Consent Order gives it carte blanche to investigate every aspect of BAM’s asset custody practices without any discernible limitation whatsoever.”

As such, the crypto firm said it sought a protective order to constrain the SEC, among other things, to get information related to the ongoing case and conduct only four depositions involving BAM staff. Additionally, it proposes the exclusion of its CEO and CFO from the deposition.

The court filing stated that the SEC’s lawyers opposed the motion.

In June, the SEC filed a lawsuit against Binance and BAM Trading over violations of federal securities law. Since then, the regulator and the exchange have been engaged in a deep legal tussle that has impacted the operations of Binance US.

The post Binance seeks protection from ‘overbroad’ SEC information requests appeared first on CryptoSlate.

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