Binance is seeking protection from SEC, claiming orders are cumbersome and inappropriate

In a document unveiled this Tuesday (15), Binance appears to be seeking protection from the SEC, arguing that responding to the Commission’s lawsuit will include “extremely expensive”.

In another passage, the defense also states that the requests of the Committee, which requested “all documents and communications”going beyond the bounds of the law “fail”.

Meanwhile, the market appears to be avoiding risk-taking. Binance Coin (BNB) has been operating in a short price range for the past two months, just like other cryptocurrencies, including Bitcoin.

Binance responds to the SEC

In June of this year, the SEC sued both Changpeng Zhao and his companies, BAM Trading, BAM Management and Binance. Among the allegations, the SEC alleges that the parties involved violated a “variety of securities law violations.”

In response, the defense is now seeking protection from the SEC, claiming that it cannot comply with all of the Commission’s requests since they “fail” It is “excessively expensive”.

“The SEC believes that BAM must provide “all communications” involving at least six witnesses on various subjects”the defense points out. “As noted above, BAM’s position is that requests for ‘All Documents and Communications’ are inappropriate, unreasonably onerous and well beyond the scope of the Federal Rules and Consent Order.”

The world’s largest cryptocurrency exchange, sources point out that Binance has laid off more than 1,000 employees after being sued by the SEC. Shortly after, it also announced a profit drop and cut benefits for its employees as well. In a leaked document, Zhao notes that the decision is related to the “market environment and regulatory climate”.

In another passage, the defense also claims to be cooperating with the authorities, noting that the “BAM worked in good faith to respond to SEC requests” is that “provided an enormous amount of information about clients’ assets”.

One of the main disputes seems to be related to the communication of the company’s executives. In its June filing, the SEC even highlighted an informal conversation between company executives who admitted they were operating outside the law.

“Although it’s just 2 guys fooling around ‘privately’ for 5 years, this is extremely damaging to our reputation and theirs”Zhao commented on the date.

Binance Coin (BNB) remains static

Both Bitcoin and other cryptocurrencies have not had any major price movements in recent weeks. Binance Coin (BNB), the main asset reflecting the health of Zhao’s exchange, is no exception.

Over the past 60 days, Binance’s cryptocurrency has moved sideways between $220 and $260, far from the big moves (up and down) it has recorded in its history.

Finally, everything indicates that this legal battle will be slow, just like with Ripple (XRP). Anyway, as the largest cryptocurrency exchange in the world, everyone is watching the outcome of this story that could affect the entire market.