MOTION for Leave to File Excess Pages by SECURITIES AND EXCHANGE COMMISSION. (Attachments: # (1) Text of Proposed Order, # (2) Exhibit Proposed Memorandum In Support of Motion for Emergency Relief)(Scarlato, Matthew)
Page 1 UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLUMBIA
__________________________________________
SECURITIES AND EXCHANGE
)
COMMISSION,
)
)
Plaintiff,
)
)
v.
)
)
BINANCE HOLDINGS LIMITED,
)
BAM TRADING SERVICES, INC.
)
BAM MANAGEMENT US HOLDINGS
)
INC., AND CHANGPENG ZHAO,
)
)
Defendants.
)
__________________________________________)
Civil Action No. 1:23-cv-
PLAINTIFF U.S. SECURITIES AND EXCHANGE COMMISSION’S
MOTION FOR LEAVE TO FILE BRIEF OF EXCESS PAGES IN SUPPORT OF
PLAINTIFF’S EMERGENCY MOTION FOR A TEMPORARY RESTRAINING ORDER
FREEZING ASSETS, GRANTING OTHER RELIEF, AND
ORDER TO SHOW CAUSE WHY RELIEF SHOULD NOT CONTINUE
Pursuant to Local Rule 7(e), Plaintiff Securities and Exchange Commission respectfully
requests that the Court permit the SEC to file a brief of 67 pages for its Memorandum of Law in
Support of the SEC’s Emergency Motion for a Temporary Restraining Order Freezing Assets,
Granting Other Relief, and Order to Show Cause Why Relief Should Not Continue (“Motion”)
(See Dkt. No. 4.) In support of this request, the SEC states as follows:
1. On June 5, 2023, the SEC filed its Complaint in this action against the four
Defendants: three entities (both foreign and U.S.-domiciled) and an individual.
2. The SEC’s Complaint is over 130 pages long, raises 13 claims against Defendants,
makes hundreds of factual allegations relating to a broad array of conduct involving
the unregistered offer and sale of crypto asset securities; the operation of unregistered
securities exchanges, unregistered clearing agencies, and unregistered broker-dealers;Page 2 and, as to two Defendants, fraudulent acts, practices, and misrepresentations,
including relating to market manipulation that occurred on one of the trading
platforms at issue.
3. Both the factual and legal issues presented in this case are complex.
4. As set forth in the SEC’s Complaint and in the Motion being filed simultaneously
herewith, Defendants have engaged in multiple acts over a period of years – including
deliberate evasion of U.S. regulatory oversight, the movement of billions of dollars
through Defendant Zhao-owned entities, and circumvention of the controls they
themselves purportedly put in place on the Binance.US trading platform – raising
significant concerns regarding (1) the safety, custody, and control of U.S. investor
assets, and (2) the risk of dissipation of assets of Defendants BAM Trading and BAM
Management. For these reasons, the SEC has filed the Motion seeking equitable and
tailored emergency relief.
5. In order to establish the SEC’s entitlement to such relief, the SEC has set forth in the
Motion evidence from which an inference can be drawn that a violation has occurred
and establishing its likelihood of success on the merits, thorough explication of the
factual and legal basis for its claims, grounds for the Court’s exercise of jurisdiction,
as well as the basis upon which the SEC believes that investor assets and assets that
could be used to secure a monetary judgment may be at risk.
6. To provide the Court with a sufficient basis to consider and rule upon the SEC’s
request, the SEC respectfully submits that a brief of 67 pages is necessary and
appropriate. Page 3 7. The SEC’s brief is only 22 pages longer than the 45 pages permitted under Local
Civil Rule 7(e) and will not unduly burden the Court.
8. Given the nature of the SEC’s Motion and circumstances under which the SEC
requests expedited relief, counsel for the SEC has not conferred with counsel for
Defendants regarding the instant request to file a brief with excess pages. The SEC is
providing the filings contemporaneously to counsel for Defendants. The SEC does
not object to Defendants filing a response to the Motion of equal length.
For the foregoing reasons, the SEC respectfully request that the Court permit the SEC to
file a brief of 67 pages for its Memorandum of Law in Support of the SEC’s Motion for an
Emergency Temporary Restraining Order Freezing Assets, Granting Other Relief, and Order to
Show Cause Why Relief Should Not Continue (see Dkt. No. 4).
Dated: June 6, Washington, D.C.
By:
____/s/___Matthew Scarlato__________________
Matthew Scarlato (D.C. Bar No. 484124)
Jennifer L. Farer (D.C. Bar No. 1013915)
J. Emmett Murphy*
U.S. SECURITIES AND EXCHANGE
COMMISSION
100 F Street N.E.
Washington, D.C. Phone:
(202) 551-3746 (Scarlato)
(202) 551-5072 (Farer)
(212) 336-0078 (Murphy)
Emails:
scarlatom@sec.gov
farerj@sec.gov
murphyJoh@sec.gov
Attorneys for the Plaintiff
*Government attorney certification pursuant to
Local Rule 83.2(d) pending Page 4 Of Counsel:
Jorge G. Tenreiro
David L. Hirsch
David A. Nasse
Michael Baker
Kathleen Hitchins
Donna Norman
Ann Rosenfield
Colby Steele
Martin Zerwitz
SECURITIES AND EXCHANGE
COMMISSION
PDF Page 1
PlainSite Cover Page
PDF Page 2
Case 1:23-cv-01599 Document 8 Filed 06/06/23 Page 1 of 4
UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLUMBIA
__________________________________________
SECURITIES AND EXCHANGE
)
COMMISSION,
)
)
Plaintiff,
)
)
v.
)
)
BINANCE HOLDINGS LIMITED,
)
BAM TRADING SERVICES, INC.
)
BAM MANAGEMENT US HOLDINGS
)
INC., AND CHANGPENG ZHAO,
)
)
Defendants.
)
__________________________________________)
Civil Action No. 1:23-cv-01599
PLAINTIFF U.S. SECURITIES AND EXCHANGE COMMISSION’S
MOTION FOR LEAVE TO FILE BRIEF OF EXCESS PAGES IN SUPPORT OF
PLAINTIFF’S EMERGENCY MOTION FOR A TEMPORARY RESTRAINING ORDER
FREEZING ASSETS, GRANTING OTHER RELIEF, AND
ORDER TO SHOW CAUSE WHY RELIEF SHOULD NOT CONTINUE
Pursuant to Local Rule 7(e), Plaintiff Securities and Exchange Commission respectfully
requests that the Court permit the SEC to file a brief of 67 pages for its Memorandum of Law in
Support of the SEC’s Emergency Motion for a Temporary Restraining Order Freezing Assets,
Granting Other Relief, and Order to Show Cause Why Relief Should Not Continue (“Motion”)
(See Dkt. No. 4.) In support of this request, the SEC states as follows:
1. On June 5, 2023, the SEC filed its Complaint in this action against the four
Defendants: three entities (both foreign and U.S.-domiciled) and an individual.
2. The SEC’s Complaint is over 130 pages long, raises 13 claims against Defendants,
makes hundreds of factual allegations relating to a broad array of conduct involving
the unregistered offer and sale of crypto asset securities; the operation of unregistered
securities exchanges, unregistered clearing agencies, and unregistered broker-dealers;
PDF Page 3
Case 1:23-cv-01599 Document 8 Filed 06/06/23 Page 2 of 4
and, as to two Defendants, fraudulent acts, practices, and misrepresentations,
including relating to market manipulation that occurred on one of the trading
platforms at issue.
3. Both the factual and legal issues presented in this case are complex.
4. As set forth in the SEC’s Complaint and in the Motion being filed simultaneously
herewith, Defendants have engaged in multiple acts over a period of years – including
deliberate evasion of U.S. regulatory oversight, the movement of billions of dollars
through Defendant Zhao-owned entities, and circumvention of the controls they
themselves purportedly put in place on the Binance.US trading platform – raising
significant concerns regarding (1) the safety, custody, and control of U.S. investor
assets, and (2) the risk of dissipation of assets of Defendants BAM Trading and BAM
Management. For these reasons, the SEC has filed the Motion seeking equitable and
tailored emergency relief.
5. In order to establish the SEC’s entitlement to such relief, the SEC has set forth in the
Motion evidence from which an inference can be drawn that a violation has occurred
and establishing its likelihood of success on the merits, thorough explication of the
factual and legal basis for its claims, grounds for the Court’s exercise of jurisdiction,
as well as the basis upon which the SEC believes that investor assets and assets that
could be used to secure a monetary judgment may be at risk.
6. To provide the Court with a sufficient basis to consider and rule upon the SEC’s
request, the SEC respectfully submits that a brief of 67 pages is necessary and
appropriate.
2
PDF Page 4
Case 1:23-cv-01599 Document 8 Filed 06/06/23 Page 3 of 4
7. The SEC’s brief is only 22 pages longer than the 45 pages permitted under Local
Civil Rule 7(e) and will not unduly burden the Court.
8. Given the nature of the SEC’s Motion and circumstances under which the SEC
requests expedited relief, counsel for the SEC has not conferred with counsel for
Defendants regarding the instant request to file a brief with excess pages. The SEC is
providing the filings contemporaneously to counsel for Defendants. The SEC does
not object to Defendants filing a response to the Motion of equal length.
For the foregoing reasons, the SEC respectfully request that the Court permit the SEC to
file a brief of 67 pages for its Memorandum of Law in Support of the SEC’s Motion for an
Emergency Temporary Restraining Order Freezing Assets, Granting Other Relief, and Order to
Show Cause Why Relief Should Not Continue (see Dkt. No. 4).
Dated: June 6, 2023
Washington, D.C.
By:
____/s/___Matthew Scarlato__________________
Matthew Scarlato (D.C. Bar No. 484124)
Jennifer L. Farer (D.C. Bar No. 1013915)
J. Emmett Murphy*
U.S. SECURITIES AND EXCHANGE
COMMISSION
100 F Street N.E.
Washington, D.C. 20549
Phone:
(202) 551-3746 (Scarlato)
(202) 551-5072 (Farer)
(212) 336-0078 (Murphy)
Emails:
scarlatom@sec.gov
farerj@sec.gov
murphyJoh@sec.gov
Attorneys for the Plaintiff
*Government attorney certification pursuant to
Local Rule 83.2(d) pending
3
PDF Page 5
Case 1:23-cv-01599 Document 8 Filed 06/06/23 Page 4 of 4
Of Counsel:
Jorge G. Tenreiro
David L. Hirsch
David A. Nasse
Michael Baker
Kathleen Hitchins
Donna Norman
Ann Rosenfield
Colby Steele
Martin Zerwitz
SECURITIES AND EXCHANGE
COMMISSION
4
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