Binance and SEC file joint protective order in securities lawsuit

On September 11, a joint motion was filed by the SEC, Binance, and its CEO Changpeng ‘CZ’ Zhao, outlining how certain documents and potential evidence will be treated during the legal proceedings. The motion aims to keep sensitive information under wraps, accessible only to certain parties like the judge, lawyers, and approved non-parties.

This protective order indicates that any confidential or non-public materials must be filed under special protection, categorized as either “CONFIDENTIAL or HIGHLY CONFIDENTIAL – ATTORNEYS’ EYES ONLY.”

This is the latest development in the SEC’s ongoing lawsuit against Binance and CZ, which began in June 2023. The commission has leveled 13 charges against them, including the alleged sale of unregistered securities. Binance and CZ have denied any wrongdoing, paving the way for an extended legal battle involving some of the U.S.’s top financial regulators.

The case is part of a broader crackdown on crypto service providers in the U.S. Other companies like Coinbase have also been sued by the SEC for alleged violations of U.S. laws. In addition, Kraken had to discontinue its staking products for U.S. residents and agreed to pay a $30 million settlement after coming under SEC scrutiny.

Despite these enforcement actions, there’s some internal disagreement within the SEC about its approach to the emerging digital asset industry. Commissioner Hester Peirce, often referred to as ‘crypto mom,’ has expressed concerns about the SEC’s current tactics.

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