BINANCE V. SEC: HEARING IN WASHINGTON DC OVER BAM MOTION TO COMPEL STARTS NOW

Last updated: June 20, 2025, 00:01 | Written by: Elizabeth Rossiello

The legal battle between Binance, one of the world's largest cryptocurrency exchanges, and the United States Securities and Exchange Commission (SEC) has taken a new turn. The SEC also seeks the Court s permission to serve Defendants Binance and Zhao via alternative means. The SEC has just filed a complaint raising serious allegations that Defendants have forToday, all eyes are on Washington D.C. as a crucial hearing commences regarding the SEC's motion to compel Binance.US, operating legally as BAM Trading Services and BAM Management U.S.Holdings, to provide more information.This motion, characterized by Binance as excessively burdensome, highlights the escalating disagreement between the regulatory body and the crypto giant. Binance vs SEC: Hearing in Washington, DC, over BAM motion to compel starts now cointelegraph.com, UTCThe hearing, presided over by Magistrate Judge Zia Faruqui, could have significant implications for the future of Binance's operations in the US, as well as the broader regulatory landscape for digital assets. As per the recent court filing, Magistrate Judge Zia M. Faruqui has designated the hearing for Monday, September 18, at 1:00 PM ET. The pivotal motions numbered 95 were filed by BAM Management and BAM Trading Services, the legal entity of Binance.US, and 102 by the SEC, respectively.The SEC alleges that Binance has been uncooperative, despite agreeing to a consent order on discovery related to alleged unregistered securities operations and other violations. 🚨 The disagreement between Binance US and the SEC 🇺🇲 escalates, with a hearing set to determine the outcome of the SEC s BAM motion to compel against Binance s operations starting now. ETH ETH crypto2025 BTCCustody of Binance.US customer assets is one of the big questions being put forward by the regulator. Binance CEO Changpeng Zhao played it cool in the hours leading up to the hearing in the District Court for the District of Columbia on Sept. 18, posting a picture of branded merchandise with a cheery message about the company s interns. He is likely to pay close attention to the court proceedings, however, as the [ ]What are the key issues at stake, and what could the outcome of this hearing mean for the crypto industry? The SEC claims Binance has been uncooperative despite the crypto exchange agreeing to a consent order on discovery in the regulator s case against it. Binance CEO Changpeng Zhao played it cool in the hours leading up to the hearing in the District Court for the District of Columbia on Sept. 18, posting a picture of branded merchandise with aLet's delve into the details.

The SEC's Motion to Compel: Understanding the Core Issue

The heart of the matter lies in the SEC's assertion that Binance is not fully cooperating with its investigation.This investigation centers on potential violations of securities laws, specifically the operation of an unregistered securities exchange.The SEC argues that Binance agreed to a consent order regarding discovery, meaning they pledged to provide relevant documents and information.However, the SEC now claims that Binance has fallen short of this agreement, prompting them to file a motion to compel. This afternoon we have civil action No. , the SEC versus Binance Holdings Limited, BAM Trading Services, Inc, BAM Management U.S. Holdings, Inc, and Changpeng Zhao.This motion essentially asks the court to force Binance to comply with the SEC's requests.

Binance, on the other hand, maintains that the SEC's demands are overly broad and burdensome. Binance CEO Changpeng Zhao played it cool in the hours leading up to the hearing in District of Columbia District Court on Sept. 18, posting a picture of branded merchandise with a cheery message about the company s interns.They argue that the scope of the requested information is unreasonable and would place an undue strain on their resources.This difference in perspective sets the stage for a complex legal debate, where the court must determine the appropriate balance between the SEC's need for information and Binance's right to avoid excessive intrusion.

What is a Motion to Compel?

A motion to compel is a legal procedure used in civil litigation to request that a court order a party to comply with a discovery request. The Binance-SEC hearing in Washington, D.C, starts now. The Binance-SEC hearing in Washington, D.C, starts now. Latest News; DC, over BAM motion to compelDiscovery is the process where parties in a lawsuit exchange information relevant to the case. Magistrate Judge Zia Faruqui is holding a hearing on the SEC s motion to compel, which Binance has characterized as unduly burdensome. The SEC said that Binance is being uncooperative despite agreeing to a consent order on discovery in the SEC s case against it for unregistered securities operations and other allegations.This can include documents, interrogatories (written questions), and depositions (oral examinations). The SEC claims Binance has been uncooperative despite the crypto exchange agreeing to a consent order on discovery in the regulator s case against it. News Binance CEO Changpeng Zhao played it cool in the hours leading up to the hearing in the District Court for the District of Columbia on Sept. 18, posting a picture [ ]If a party refuses to provide information requested during discovery, the requesting party can file a motion to compel.The court will then review the motion and determine whether the requested information is relevant and whether the refusal to provide it is justified. Court Description: MEMORANDUM OPINION ORDER denying 117 the BAM Defendants' Motion to Dismiss and granting in part and denying in part 118 the Joint Binance and Zhao Motion to Dismiss. See Order for details.If the court grants the motion, the party must comply or face potential sanctions, such as fines or even dismissal of their case.

Key Players and Their Stances

Several key players are involved in this legal drama, each with their own perspective and objectives:

The SEC (Securities and Exchange Commission): The SEC is an independent agency of the U.S. federal government responsible for enforcing the federal securities laws and regulating the securities industry.In this case, the SEC is acting as the plaintiff, alleging that Binance violated securities laws.
Binance Holdings Limited, BAM Trading Services Inc., BAM Management U.S.Holdings, Inc.: These are the defendant entities in the case.BAM Trading Services Inc. and BAM Management U.S. The SEC claims Binance has been uncooperative despite the crypto exchange agreeing to a consent order on discovery in the regulator's case against it. Binance CEO Changpeng Zhao played it cool in the hours leading up to the hearing in District of Columbia District Court on Sept. 18, posting a picture of branded merchandise with a cheery message about the company s interns. He is likely toHoldings, Inc. operate as Binance.US. SEC: Hearing in Washington DC over BAM motion to compel starts now 2 min read The SEC claims Binance has been uncooperative despite the crypto exchange agreeing to a consent order on discovery in the regulator s case against it.They are defending against the SEC's allegations and arguing that they have been cooperative within reasonable bounds.
Changpeng Zhao (CZ): The CEO of Binance, Changpeng Zhao is a prominent figure in the cryptocurrency world. The Binance-SEC hearing in Washington, D.C, starts now. Custody of Binance.US customer assets is one of the big questions being put forward by the regulator.While not directly involved in the day-to-day operations of Binance.US, his leadership and overall strategy are undoubtedly influencing the legal proceedings.
Magistrate Judge Zia Faruqui: Judge Faruqui is presiding over the hearing on the motion to compel. 🚨 Binance vs SEC: Hearing in Washington, DC, over BAM motion to compel starts now. 🚨 The disagreement between Binance US and the SEC 🇺🇲 escalates, with a hearing set to determine the outcome of the SEC s BAM motion to compel against Binance s operations starting now.He will be responsible for weighing the arguments from both sides and making a decision on whether to grant or deny the SEC's motion.

The SEC's primary goal is to ensure that Binance is complying with securities laws and providing sufficient information for the investigation. BTCUSD Bitcoin Binance vs SEC: Hearing in Washington, DC, over BAM motion to compel starts nowBinance's objective is to protect its business interests and avoid unduly burdensome discovery requests. The disagreement between Binance.US and the United States Securities Exchanges Commission escalates, with a hearing set to determine the outcome of the SEC s BAM motion to compel againstChangpeng Zhao, while outwardly appearing calm, undoubtedly understands the serious implications of this legal battle for his company's future.

Custody of Binance.US Customer Assets: A Central Point of Contention

A crucial aspect of the SEC's investigation, and a significant factor influencing the motion to compel, is the custody of Binance.US customer assets.The SEC is reportedly concerned about how these assets are being managed and whether they are adequately protected. Magistrate Judge Zia Faruqui is holding a hearing on the SEC s motion to compel, which Binance has characterized as unduly burdensome. The SEC said that Binance is uncooperative, despite agreeing to a consent order on discovery in the SEC s case against it for unregistered securities operations and other allegations.This concern stems from the broader regulatory focus on investor protection in the cryptocurrency space.

The SEC likely seeks detailed information about the following:

Storage and Security Protocols: How are customer funds stored?What security measures are in place to prevent theft or loss?
Internal Controls: What internal controls are in place to prevent misuse of customer funds?
Third-Party Custodians: Are any third-party custodians involved in managing customer assets? Magistrate Judge Zia Faruqui is holding a hearing on the SEC s motion to compel, which Binance has characterized as unduly burdensome. The SEC said that Binance is beingIf so, who are they, and what is their role?
Segregation of Funds: Are customer funds segregated from Binance's own assets?This is crucial to prevent commingling and ensure that customer funds are available if needed.

Binance likely argues that its security measures are robust and that customer assets are well-protected.However, the SEC may have specific concerns or questions that require more detailed answers, leading to the current dispute over discovery.

The Importance of the Hearing: Implications for the Crypto Industry

The outcome of this hearing could have far-reaching consequences, not just for Binance but for the entire cryptocurrency industry.Here's why:

Precedent-Setting Decision: The court's ruling on the motion to compel could set a precedent for future SEC investigations and enforcement actions against crypto companies.A ruling in favor of the SEC could embolden the agency to pursue more aggressive discovery requests, while a ruling in favor of Binance could signal a more cautious approach.
Regulatory Clarity (or Lack Thereof): The hearing could shed light on the SEC's views on the regulatory status of various cryptocurrencies and crypto-related activities.This clarity (or lack thereof) could significantly impact the way crypto businesses operate in the US.
Impact on Investor Confidence: The ongoing legal battle between Binance and the SEC could erode investor confidence in the crypto market.Negative news and uncertainty can lead to price volatility and discourage new investors from entering the space.
Future of Binance.US: The ultimate outcome of the SEC's investigation could determine the future of Binance.US.Depending on the severity of the findings, Binance.US could face fines, restrictions on its operations, or even a forced shutdown.

Changpeng Zhao's Calm Demeanor: Reading Between the Lines

In the hours leading up to the hearing, Binance CEO Changpeng Zhao posted a picture of branded merchandise with a positive message about the company's interns.This seemingly nonchalant behavior has sparked debate within the crypto community.Is CZ genuinely unconcerned about the hearing, or is he simply putting on a brave face?

Several interpretations are possible:

Confidence in Binance's Position: CZ may genuinely believe that Binance has a strong legal defense and that the SEC's claims are without merit.
Attempt to Project Strength: In the face of adversity, it's important for a CEO to project confidence and stability.CZ's positive message could be an attempt to reassure investors and employees.
Strategic Diversion: By focusing on positive news and company achievements, CZ may be trying to divert attention away from the negative publicity surrounding the SEC investigation.
A Calculated Gamble: CZ may believe that appearing unconcerned will give Binance a strategic advantage in the legal battle.

Regardless of CZ's true feelings, it's safe to assume that he is closely monitoring the court proceedings and is prepared to take whatever steps are necessary to protect Binance's interests.

Alternative Means of Service: Another SEC Strategy

Adding another layer to the complexity, the SEC is also seeking the court's permission to serve Binance and Zhao via alternative means.This request suggests that the SEC may be facing difficulties in serving the defendants through traditional methods.Alternative means of service could include methods such as serving the legal representatives of Binance in the US or publishing notice of the lawsuit in a widely circulated publication.This is a common tactic when a defendant is difficult to locate or is located outside of the jurisdiction of the court.

What are the Possible Outcomes of the Hearing?

The hearing can result in several different outcomes.Here are the most likely scenarios:

The Court Grants the SEC's Motion to Compel in Full: This would require Binance to provide all of the information requested by the SEC.This would be a significant victory for the SEC and could accelerate the investigation.
The Court Grants the SEC's Motion to Compel in Part: The court could order Binance to provide some of the requested information, but not all.This would be a compromise outcome, where both sides get something they want.
The Court Denies the SEC's Motion to Compel: This would mean that Binance does not have to provide the requested information.This would be a major victory for Binance and could significantly slow down the SEC's investigation.
The Court Orders Further Negotiation: The court could order both parties to engage in further negotiations to try to reach a compromise agreement on the scope of the discovery requests.

The most likely outcome is probably a compromise where the court grants the motion to compel in part, forcing Binance to turn over *some* of the data requested while acknowledging the burden on Binance.The exact specifics of what is turned over will likely have lasting impacts.

Practical Implications for Crypto Users and Businesses

Regardless of the outcome of the hearing, crypto users and businesses should be aware of the following:

Increased Regulatory Scrutiny: The SEC's investigation of Binance is a clear sign that the agency is taking a more aggressive approach to regulating the cryptocurrency industry.Crypto businesses should expect increased scrutiny and should be prepared to comply with SEC regulations.
Importance of Compliance: Crypto businesses should prioritize compliance with all applicable laws and regulations.This includes implementing robust KYC (Know Your Customer) and AML (Anti-Money Laundering) procedures, as well as ensuring that their operations comply with securities laws.
Diversification of Exchanges: Crypto users may want to consider diversifying their holdings across multiple exchanges to mitigate the risk of any one exchange being shut down or facing regulatory action.
Stay Informed: Stay informed about the latest developments in the regulatory landscape for cryptocurrencies.This will help you make informed decisions about your investments and business operations.

Common Questions About the Binance v.SEC Case

Here are some frequently asked questions about the Binance v.SEC case:

Why is the SEC investigating Binance?

The SEC is investigating Binance for potential violations of securities laws, specifically the operation of an unregistered securities exchange and the potential sale of unregistered securities.

What are the SEC's specific allegations against Binance?

The SEC alleges that Binance has been operating an unregistered securities exchange in the US, offering unregistered securities to US investors, and failing to properly segregate customer funds.

What is Binance's response to the SEC's allegations?

Binance denies the SEC's allegations and maintains that it has been compliant with all applicable laws and regulations.

What is the potential impact of the SEC's lawsuit on Binance?

The SEC's lawsuit could have a significant impact on Binance, potentially leading to fines, restrictions on its operations, or even a forced shutdown of Binance.US.

How will the outcome of the case affect the cryptocurrency industry?

The outcome of the case could have far-reaching consequences for the cryptocurrency industry, potentially setting a precedent for future SEC enforcement actions and shaping the regulatory landscape for digital assets.

Conclusion: Key Takeaways and Future Outlook

The hearing in Washington D.C. regarding the SEC's motion to compel Binance marks a critical juncture in the ongoing legal battle between the cryptocurrency exchange and the regulatory agency.The outcome of this hearing will not only determine the extent to which Binance must comply with the SEC's demands for information but will also send a strong signal about the future of cryptocurrency regulation in the United States.The key takeaways from this situation include:

Regulatory Scrutiny is Intensifying: The SEC is clearly taking a more aggressive approach to regulating the cryptocurrency industry, and crypto businesses should expect increased scrutiny.
Compliance is Paramount: Compliance with all applicable laws and regulations is essential for crypto businesses to survive and thrive in the evolving regulatory landscape.
Uncertainty Remains: The future of cryptocurrency regulation in the US remains uncertain, and the outcome of the Binance v.SEC case could significantly impact the direction of that regulation.

As the legal proceedings unfold, it is crucial for crypto users, businesses, and investors to stay informed and adapt to the changing regulatory environment.Whether the hearing favors the SEC or Binance, the long-term implications for the crypto space are undeniable.Keep an eye on future updates regarding the proceedings to see where this complex case goes.The regulatory climate will only heat up as the case continues.