The legal clash involving the U.S. Securities and Exchange Commission (SEC), Binance (including its American division), and its founder, Changpeng “CZ” Zhao, is on the verge of entering a crucial phase. Both sides are now focused on the discovery and deposition stage, with the aim of resolving the ongoing disputes.
In a joint report submitted to the court, the parties involved expressed the belief that there are no issues that require the intervention of a judge. This paves the way for overcoming the challenges posed by the court’s order, which required Binance to provide specific documents and for Binance.US to establish independent systems, wallets, and personnel.
Binance.US has once again provided the SEC with additional information, claiming that this will be the final batch of documents handed over. The coordination of testimonies from the exchange is seen as a significant step forward. The SEC is now poised to review the submissions and identify any remaining vulnerabilities. Meanwhile, discussions between the SEC and Zhao continue, with the aim of finalizing all outstanding document requests and reaching a settlement without further court involvement.
The SEC is considering imposing fines in the ongoing legal battle with Binance. The court order triggered the later stage of the lawsuit, resulting in Binance rebranding its venture capital offshoot, Binance Labs. The upcoming Rule 30(b)(6) deposition, scheduled to take place in the next month or so, will be crucial in identifying key witnesses and documents, determining the extent of rule violations, and assessing potential consequences.
The outcome of the Coinbase case and the rulings made by Peter D. Failla may influence the direction of the Binance case. In contrast to the previous allegations faced by Coinbase, Binance may face the SEC seeking summary judgments and significant fines as part of a possible settlement. Both parties are currently engaged in a preparatory program ahead of the deposition, aiming to clarify and resolve matters in a mutually agreeable manner.
The joint report from the SEC and Binance indicates that the legal battle has reached a critical stage. The fact that they have reached a temporary settlement and do not require a judge’s decision at present suggests that they are prepared to move forward. This indicates that the discovery and deposition process may proceed without major obstacles. The consent deal has already had a significant impact on Bitgraph.
As the case progresses, the upcoming Rule 30(b)(6) deposition will shed light on potential legal infringements and fines. In the meantime, the SEC and Binance are engaged in ongoing discussions to address unresolved issues and find a peaceful resolution.
