On Tuesday, September 13, Magistrate Judge Zia M. Faruqui issued a minute order in the U.S. SEC v. Binance lawsuit, scheduling the next hearing for Monday, September 18. The hearing will address two pivotal motions filed by BAM Management and BAM Trading Services (affiliates of Binance US), concerning confidential details in the litigation and opposition to the U.S. SEC regarding a motion to compel and for other relief.
In addition to this development, Binance.US has seen significant changes in its leadership structure. Brian Shroder, CEO of Binance’s U.S. affiliate Binance.US, left his position as the exchange made another round of job cuts, eliminating a third of its workforce. Despite speculation about the company’s stability following these moves, CEO CZ has denied any issues, stating that the exchange periodically reviews its team.
John Reed Stark, former Chief of the SEC Office of Internet Enforcement, commented on the case recently, highlighting significant timing in the CEO’s resignation and potential whistleblowers’ emergence. He also noted Binance’s protective order against the SEC, arguing that the commission’s discovery requests were overly broad and unduly burdensome.
Stark also shed light on BAM Trading’s unusual request to limit the SEC’s depositions to only four BAM employees and exclude six key witnesses, including BAM’s CEO Brian Shroder and CFO Jasmine Lee. He expressed skepticism about such a request, given his extensive experience in the SEC Enforcement Division.
Adding to the drama, Binance US’s chief legal officer, Norman Reed, has reportedly taken over following Shroder’s departure. Amidst these changes, Binance US also announced significant layoffs, cutting over 100 positions, amounting to one-third of its staff. CEO Changpeng Zhao attributed these layoffs to the SEC’s actions, stating that the commission’s attempts to “cripple our industry” have had tangible consequences on American jobs and innovation.
Stark speculates that the SEC and the U.S. Department of Justice (DOJ) might find opportunities to secure cooperation from Mr. Shroder, especially if he fears criminal prosecution. The recent layoffs at Binance could also provide the SEC with potential whistleblowers, who might be incentivized by the possibility of significant financial rewards.
The upcoming hearing on September 18 promises to be a pivotal moment in this case, as the court will address key motions that could shape the trajectory of the legal battle between Binance and the SEC.
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Source: Cryptocurrency - investing.com
