SECURITIES AND EXCHANGE COMMISSION v. BINANCE HOLDINGS LIMITED et al Document 18: Declaration, Attachment 3

District Of Columbia District Court
Case No. 1:23-cv-01599-ABJ-ZMF
Filed June 6, 2023

DECLARATION by SECURITIES AND EXCHANGE COMMISSION re [8] MOTION for Leave to File Excess Pages filed by SECURITIES AND EXCHANGE COMMISSION. (Attachments: # (1) Exhibit A-49, # (2) Exhibit A-50, # (3) Exhibit A-51, # (4) Exhibit A-52, # (5) Exhibit A-53, # (6) Exhibit A-54, # (7) Exhibit A-55, # (8) Exhibit A-56, # (9) Exhibit A-57, # (10) Exhibit A-58, # (11) Exhibit A-59, # (12) Exhibit A-60, # (13) Exhibit A-61, # (14) Exhibit A-62, # (15) Exhibit A-63, # (16) Exhibit A-64)(Scarlato, Matthew)

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Page 1 EXHIBIT A-5
Page 2 G GOODWIN
Grant P. Fondo
+1 650 752 GFondo@goodwinlaw.com
Goodwin Procter LLP
601 Marshall Street
Redwood City, CA
Meghan K. Spillane
+1 212 459 MSpillane@goodwinlaw.com
The New York Times Building
620 Eighth Avenue
New York, NY goodwinlaw.com
July 9,
CONFIDENTIAL TREATMENT REQUESTED
BY BAM TRADING SERVICES INC.
PURSUANT TO 17 C.F.R. § 200.
VIA FTP (ENF-CPU@SEC.GOV)
Kathleen Hitchins
Senior Counsel, Division of Enforcement
U.S. Securities and Exchange Commission
100 F Street, NE
Washington, D.C. 20549-Re:
ENF-CPU
U.S. Securities and Exchange Commission
6315 Bren Mar Drive, Suite Alexandria, VA ENF-CPU@sec.gov
In the Matter of Binance.US (HO-13865)
Dear Ms. Hitchins:
As you know, we represent BAM Trading Services Inc. (“BAM Trading”) in the above captioned matter.
We write with respect to the subpoena issued by the U.S. Securities and Exchange Commission (the
“SEC”) to BAM Trading, dated December 17, 2020 (the “Subpoena”), in connection with the abovereferenced matter. In response to the Subpoena and pursuant to our prior discussions regarding the
Subpoena, enclosed please find BAM Trading’s fourteenth production of documents, bearing Batesstamp numbers BTS00042037 - BTS00058743. As previously agreed, BAM Trading will continue
producing responsive documents on a rolling basis.
As reflected on the log attached hereto as Exhibit A, this production includes certain BAM Trading
business records that are primarily responsive to Request Nos. 1, 2, 3, 4, 5, 8, 9, 11, 13, 14, 21, 31, 38,
43, 44 45, and 47. Furthermore, attached hereto as Exhibit B are certain narratives responsive to
Requests No. 22, 28, 29. This production, along with this letter, are being provided contemporaneously
via secure file transfer to ENF-CPU at the above-identified address. The password to access the
production will be provided by email. We have not withheld any documents on the basis of privilege or
other protected grounds from this production, nor have any documents within this production been
redacted.
None of the documents or information we are providing in response to the Subpoena are intended
to constitute a waiver of any attorney-client privilege, attorney work product protection, or any other legal
privilege or other protection. Any production of privileged or otherwise protected documents is
inadvertent.
FOIA CONFIDENTIAL TREATMENT REQUESTED BY BAM
BTS00042025
Page 3 G GOODWIN
Kathleen Hitchins
July 9, Page
CONFIDENTIAL TREATMENT REQUESTED
BY BAM TRADING SERVICES INC.
PURSUANT TO 17 C.F.R. § 200.*
*
*
Pursuant to 17 C.F.R. § 200.83, we respectfully request confidential treatment for (i) this letter,
(ii) the materials transmitted with this letter, (iii) any memoranda, notes, correspondence, or other writings
made by any member or employee of the Commission relating to any of the foregoing documents or any
conference or telephone call with respect thereto, and (iv) any copies or extracts of any of the foregoing
(collectively, the “Confidential Materials”). This request for confidential treatment is made for reasons of
financial and business confidentiality under FOIA Exemption 4, 5 U.S.C. § 552(b)(4). This request is not
to be construed as a waiver of any other protection from disclosure or confidential treatment accorded by
law, and BAM Trading will rely on and invoke any such confidentiality protection. We respectfully request
that the Confidential Materials be maintained in confidence, not be made part of any public record, and
not be disclosed to any person as it contains confidential information. In accordance with 17 C.F.R.
§ 200.83(d)(1), if any person (including any governmental employee who is not an employee of the
Commission) should request access to or an opportunity to inspect this letter or any supplemental
materials transmitted herewith, we request that we be immediately notified of any such request, be
furnished with a copy of all written materials pertaining to such request (including, but not limited to, the
request itself) and be given at least ten business days advance notice of any intended release so that
BAM Trading may, if deemed necessary or appropriate, pursue any remedies available to it. In such an
event, we request that you contact the undersigned by telephone, in addition to sending the required
notice by mail.
*
*
*
Should you have any further questions regarding this matter, please do not hesitate to contact us.
FOIA CONFIDENTIAL TREATMENT REQUESTED BY BAM
BTS00042026
Page 4 G GOODWIN
Kathleen Hitchins
July 9, Page
CONFIDENTIAL TREATMENT REQUESTED
BY BAM TRADING SERVICES INC.
PURSUANT TO 17 C.F.R. § 200.
Sincerely,
/s/ Grant P. Fondo
Grant P. Fondo
Meghan K. Spillane
cc:
Paul Kim, Assistant Director, U.S. Securities and Exchange Commission
Ann Rosenfield, Senior Counsel, U.S. Securities and Exchange Commission
Adam Gottlieb, Senior Counsel, U.S. Securities and Exchange Commission
Matthew Solomon, Cleary Gottlieb Steen & Hamilton LLP
Alexander Janghorbani, Cleary Gottlieb Steen & Hamilton LLP
Enclosures (via FTP)
FOIA CONFIDENTIAL TREATMENT REQUESTED BY BAM
BTS00042027
Page 5 In the Matter of Binance.US (HO-13865) EXHIBIT A
Begin Bates
End Bates
BTS
BTS
BTSBTS
Responsive to Subpoena Request(s)
Volume
N/A
BTS_Vol_
BTS
BTS_Vol_
BTS
1,
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
9,
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
N/A
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
9, 15,
BTS_Vol_
BTS
BTS
9, 10, 15,
BTS_Vol_
BTS
BTS
15,
BTS_Vol_
BTS
BTS
15, 18, 31,
BTS_Vol_
BTS
BTS
15, 31,
BTS_Vol_
BTS
BTS
15, 19, 31,
BTS_Vol_
BTS
BTS
15, 19, 25, 26,
BTS_Vol_
BTS
BTS
6, 15,
BTS_Vol_
BTS
BTS
6, 15, 31,
BTS_Vol_
BTS
BTS
15, 25, 26,
BTS_Vol_
BTS
BTS
15, 25, 26, 31,
BTS_Vol_
BTS
BTS
6, 15, 25, 26,
BTS_Vol_
BTS
BTS
10, 15,
BTS_Vol_
BTS
BTS
6, 10, 15, 30,
BTS_Vol_
BTS
BTS
6, 7, 10, 15, 19, 31,
BTS_Vol_
BTS
BTS
7, 15,
BTS_Vol_
BTS
BTS
6, 7, 15, 18, 31,
BTS_Vol_
BTS
BTS
7, 15, 31,
BTS_Vol_
BTS
BTS
7, 15, 19,
BTS_Vol_
BTS
BTS
6, 7, 15,
BTS_Vol_
BTS
BTS
6, 7, 15, 31,
BTS_Vol_
BTS
BTS
6, 7, 15, 25, 26,
BTS_Vol_
BTS
BTS
N/A
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
6, 15, 31,
BTS_Vol_
BTS
BTS
6, 15, 25, 26, 31,
BTS_Vol_
BTS
BTS
7, 10, 25,
BTS_Vol_
BTS
BTS
10, 25,
BTS_Vol_
BTS
BTS
2, 3, 11,
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
BTS_Vol_
FOIA CONFIDENTIAL TREATMENT REQUESTED BY BAM
BTS00042028
Page 6 In the Matter of Binance.US (HO-13865) EXHIBIT A
Begin Bates
End Bates
Responsive to Subpoena Request(s)
Volume
BTS
BTS
6, 7, 15, 31,
BTS_Vol_
BTS
BTS
6, 7, 19, 25, 26,
BTS_Vol_
BTS
BTS
25,
BTS_Vol_
BTS
BTS
7, 25, 26,
BTS_Vol_
BTS
BTS
6, 7, 25,
BTS_Vol_
BTS
BTS
6, 7, 25, 26,
BTS_Vol_
BTS
BTS
1, 4, 5,
BTS_Vol_
BTS
BTS
6, 19, 25,
BTS_Vol_
BTS
BTS
6, 19, 25, 26,
BTS_Vol_
BTS
BTS
25,
BTS_Vol_
BTS
BTS
25, 26,
BTS_Vol_
BTS
BTS
6, 25, 26,
BTS_Vol_
BTS
BTS
N/A
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6, 7, 25,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6, 7, 25, 26,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6, 7, 25, 26,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6, 7, 25, 26,
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6, 7, 25, 26,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6, 7, 25,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
7, 25,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6, 7, 25, 26,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6, 7, 25,
BTS_Vol_
FOIA CONFIDENTIAL TREATMENT REQUESTED BY BAM
BTS00042029
Page 7 In the Matter of Binance.US (HO-13865) EXHIBIT A
Begin Bates
End Bates
Responsive to Subpoena Request(s)
Volume
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6, 7, 25, 26,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6, 7, 25, 26,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6, 7, 25,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6, 7, 25, 26,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6, 7, 25,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6, 7, 25,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6, 7, 25, 26,
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6, 7, 25,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
FOIA CONFIDENTIAL TREATMENT REQUESTED BY BAM
BTS00042030
Page 8 In the Matter of Binance.US (HO-13865) EXHIBIT A
Begin Bates
End Bates
BTS
BTS
BTSBTS
Responsive to Subpoena Request(s)
Volume
6, 7,
BTS_Vol_
BTS
6,
BTS_Vol_
BTS
6, 7,
BTS_Vol_
BTS
BTS
6, 7, 25, 26,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6, 7, 25,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6, 7, 25,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
NA
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
FOIA CONFIDENTIAL TREATMENT REQUESTED BY BAM
BTS00042031
Page 9 In the Matter of Binance.US (HO-13865) EXHIBIT A
Begin Bates
End Bates
Responsive to Subpoena Request(s)
Volume
BTS
BTS
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
6, 7, 15,
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6, 7, 15,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
BTS_Vol_
FOIA CONFIDENTIAL TREATMENT REQUESTED BY BAM
BTS00042032
Page 10 In the Matter of Binance.US (HO-13865) EXHIBIT A
Begin Bates
End Bates
BTS
BTS
BTSBTS
Responsive to Subpoena Request(s)
Volume
6,
BTS_Vol_
BTS
BTS_Vol_
BTS
6, 7,
BTS_Vol_
BTS
BTS
6,
BTS_Vol_
BTS
BTS
6, 7,
BTS_Vol_
BTS
BTS
6, 7, 25, 26,
BTS_Vol_
BTS
BTS
6, 7, 25,
BTS_Vol_
BTS
BTS
7, 25,
BTS_Vol_
BTS
BTS
6, 7, 25,
BTS_Vol_
BTS
BTS
7, 25,
BTS_Vol_
BTS
BTS
6, 7, 25, 26,
BTS_Vol_
BTS
BTS
6, 7, 25,
BTS_Vol_
BTS
BTS
7, 25,
BTS_Vol_
BTS
BTS
25,
BTS_Vol_
BTS
BTS
6, 7, 25, 26,
BTS_Vol_
BTS
BTS
6, 7, 25,
BTS_Vol_
BTS
BTS
6, 7, 25, 26,
BTS_Vol_
BTS
BTS
6, 7, 25,
BTS_Vol_
BTS
BTS
6, 7, 25, 26,
BTS_Vol_
BTS
BTS
7, 25,
BTS_Vol_
BTS
BTS
6, 7, 25,
BTS_Vol_
BTS
BTS
6, 7, 25, 26,
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
6, 7, 25, 26,
BTS_Vol_
BTS
BTS
25,
BTS_Vol_
BTS
BTS
6, 7, 25,
BTS_Vol_
BTS
BTS
6, 7, 25, 26,
BTS_Vol_
BTS
BTS
6, 7, 25,
BTS_Vol_
BTS
BTS
25,
BTS_Vol_
BTS
BTS
6, 7, 25, 26,
BTS_Vol_
BTS
BTS
6, 7, 25,
BTS_Vol_
BTS
BTS
6, 7, 25, 26,
BTS_Vol_
BTS
BTS
7, 25,
BTS_Vol_
BTS
BTS
6, 7, 25,
BTS_Vol_
BTS
BTS
7, 25,
BTS_Vol_
BTS
BTS
6, 7, 25,
BTS_Vol_
BTS
BTS
25,
BTS_Vol_
BTS
BTS
6, 7, 25,
BTS_Vol_
BTS
BTS
7, 25,
BTS_Vol_
BTS
BTS
25,
BTS_Vol_
BTS
BTS
6, 7, 25,
BTS_Vol_
BTS
BTS
6, 7, 25, 26,
BTS_Vol_
BTS
BTS
6, 7, 25,
BTS_Vol_
FOIA CONFIDENTIAL TREATMENT REQUESTED BY BAM
BTS00042033
Page 11 In the Matter of Binance.US (HO-13865) EXHIBIT A
Begin Bates
End Bates
Responsive to Subpoena Request(s)
Volume
BTS
BTS
BTS_Vol_
BTS
BTS
N/A
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
N/A
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
N/A
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
N/A
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
N/A
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
1, 9, 12, 11, 14, 32, 35, 39,
BTS_Vol_
BTS
BTS
N/A
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
N/A
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
15,
BTS_Vol_
BTS
BTS
8, 13, 21, 31, 38, 43, 44,
BTS_Vol_
BTS
BTS
23, 24,
BTS_Vol_
BTS
BTS
N/A
BTS_Vol_
BTS
BTS
15,
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
8, 13, 21, 31, 38, 43, 44,
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
BTS_Vol_
BTS
BTS
2, 3, 11,
BTS_Vol_
BTS
BTS
1, 4,
BTS_Vol_
BTS
BTS
8, 13, 21, 31, 38, 43, 44,
BTS_Vol_
BTS
BTS
22, 28,
BTS_Vol_
FOIA CONFIDENTIAL TREATMENT REQUESTED BY BAM
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PURSUANT TO 17 C.F.R. § 200.Exhibit B: Narrative Responses to Request Nos. 22, 28 and BAM Trading provides the following narrative descriptions in response to Request Nos.
22, 28 and 29 of the Subpoena as part of BAM Trading’s ongoing cooperation with the SEC’s
investigation. The responses below are based upon counsel for BAM Trading’s reasonable
investigation in response to each Request. BAM Trading’s business relies on its Master
Services, Software Licensing and Wallet Custody Agreements with Binance Holdings Limited
(“Binance Holdings”) for maintenance of BAM Trading’s infrastructure and user custody
accounts. Accordingly, the first-hand information within BAM Trading’s possession, custody or
control regarding the underlying infrastructure and mechanics provided by non-U.S. Binance
affiliates of Binance Holdings (collectively “Binance.com”) for the Platform’s operation is
necessarily limited, which may affect the completeness of the below responses to the Requests.
Furthermore, BAM Trading is currently in the process of making enhancements to its business,
including compliance enhancements. All responses below are therefore based on the
information currently within BAM Trading’s possession. Because the investigation is still
underway, BAM Trading expressly reserves the right to amend, revise, correct, supplement, or
clarify any of the below narrative descriptions pursuant to additional facts or information
gathered at any time after the date of this response.
SEC Request No. 22: Descriptions, schematics, or Documents sufficient to show how BAM
Trading and any other Person(s) (including entities) provide BAM Trading’s services, including,
but not limited to, distribution of digital assets; facilitation of automated trading of digital assets;
custody of funds and digital assets; compliance services; clearing services; market-making
services; staking-related services; or other services Concerning digital assets.
Response to SEC Request No. 22:
I.
“Distribution of Digital Assets, Facilitation of Automated Trading, and Clearing
Services”
BAM Trading’s digital asset trading and settlement is operated through a central order
book (“Order Book”). BAM Trading customers (“Users”) can buy and sell various digital assets
for other digital assets or U.S. dollars (“USD”). To place an order on the Order Book, a User must
have an available balance of the relevant asset in their digital asset wallet or their USD wallet
(“Linked Wallet”) sufficient to cover the total value of the order plus any applicable fees. When a
User places an order, that quantity of the relevant asset becomes subject to a hold. The BAM
Trading Platform then connects with a matching engine to match “Taker Orders” with open “Maker
Orders” on the Order Book based on “Price-Time Priority.” 1 BAM Trading does not manually
match Taker and Maker Orders, but instead relies upon the matching engine technology it
licenses from Binance Holdings under a Master Services Agreement and Software Licensing
“Price-Time Priority” means that each time a Taker Order is posted, the Taker Order is matched
with the earliest in time Maker Order at the best price on the Order Book; and to the extent that the Taker
Order is not completely filled by that Maker Order, it is matched with any subsequent Maker Orders at that
price, in the sequence those Maker Orders were posted. To the extent that the Taker Order is not
completely filled by one or more Maker Orders, it is matched with one or more Maker Orders at the next
best price, in the sequence those Maker Orders were posted, and this process is repeated until the Taker
Order is completely filled. All Users accessing the BAM Trading Platform are subject to the same PriceTime Priority.
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PURSUANT TO 17 C.F.R. § 200.Agreement, both dated January 7, 2020 (together with the Trademark Services Agreement and
the Wallet Custody Agreement, the service level agreements, or “SLAs”).
Once orders are filled, the settlement of such filled orders occurs automatically as the
relevant digital asset is distributed to the linked digital asset wallet(s). BAM Trading does not itself
perform any matching or execution of the trades. Furthermore, BAM Trading does not currently
perform settlement or clearing services relating to the exchange of digital assets. All services
associated with clearing trades on the BAM Trading Platform are provided by Binance.com.
II.
Custody of Digital Assets
The BAM Trading Platform, through its custody agreement, provides Users with a “Digital
Asset Wallet” that supports the sending, receipt, and storage of supported digital assets through
the User’s web browser or mobile app. Binance.com provides BAM Trading with, among other
things, the following services:
•
•
•
•
•
•
•
III.
Establishing and maintaining the BAM Trading Platform customer custody accounts
(“Customer Accounts”) and the Platform’s own custody account (“Platform Account”),
as instructed by BAM Trading.
Holding in safe custody the digital assets in each Customer Account and the Platform
Account in accordance with certain security standards, among other actions, including
safekeeping all private keys, physical keys, access codes, access devices,
combinations, and similar security codes, devices, and identifiers.
Timely, accurately, and safely transferring digital assets from any Customer Account
or the Platform Account in accordance with instructions from BAM Trading.
Establishing, maintaining, and periodically updating the storage system to ensure the
security of the digital assets in each Customer Account and the Platform Account.
Maintaining capital adequacy requirements to the extent required by applicable law.
Maintaining cybersecurity controls at every step of the key and wallet creation process.
Maintaining a security program, including with respect to technical, physical, and
administrative and organizational safeguards, which includes regular testing.
Staking-related Services
BAM Trading will provide more information about its staking-related services in connection
with the forthcoming Response to SEC Request No. 40.
IV.
Custody and Transfers of USD
A User who has opened accounts with Binance.US and Prime Trust LLC (“Prime Trust”),
and has loaded digital assets or USD into their Binance.US wallet or Prime Trust Account,
respectively, may engage in trades by placing an order into an electronic, real-time list of open
orders on the Order Book. 2 When any two Users on the BAM Trading Platform have submitted
compatible orders, the matching engine will automatically identify the matching orders and
execute the trade by (i) removing both orders from the Order Book, and (ii) facilitating the
settlement of the transaction by initiating corresponding debits and credits in the counterparties’
We note that not all Users may wish to trade with USD. If a User wishes to deposit and trade only
using digital assets, such User would not be required to set up a Prime Trust Account.

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PURSUANT TO 17 C.F.R. § 200.Digital Asset Wallets and/or by instructing the execution of corresponding debits and credits in
the counterparties’ Prime Trust Accounts.
Institutional clients may also deposit and withdraw USD through Silvergate Bank, provided
they: (1) maintain a Silvergate Exchange Network (“SEN”) account; (2) request that BAM Trading
enable transfers between their SEN account and BAM Trading’s corporate SEN account; and (3)
provide written authorization to Silvergate Bank to facilitate transfers between their SEN account
and BAM Trading’s SEN account. Through their SEN accounts, institutional clients are able to
transfer USD across exchanges.
V.
Market Making Services
BAM Trading does not itself act as a market maker. However, several institutional Users
– including some that we understand to be affiliated with BAM Trading’s ultimate beneficial owner – provide market making services on the BAM Trading Platform. Institutional Users generally
receive Maker and Taker fees of 0% and 3%, respectively. BAM Trading may negotiate
preferential trading fee structures based on the institutional Users’ amount of trading activity
(which BAM Trading revisits periodically if trading volumes change).
Customer orders for trades conducted using the OTC Desk are fulfilled by Alameda
Research Ltd. User orders for trades conducted using “One-Click Buy/Sell” are fulfilled by a
separate Maker, Sigma Chain AG. BAM Trading does not charge any trading fees for OTC trades,
but BAM Trading and the liquidity provider receive a spread in connection with any trades.
VI.
Compliance Services
A.
Account Verification and Customer Onboarding
The BAM Trading compliance team (the “Compliance Team”) has established robust
customer onboarding and due diligence procedures in accordance with obligations set forth under
the Bank Secrecy Act (as amended by the USA PATRIOT Act, the “BSA”) and its implementing
regulations in order to maintain effective Know Your Customer (“KYC”) and due diligence
processes. The Compliance Team will reject prospective customers if their identity cannot be
adequately verified, if they are identified as being subject to sanctions, or if they are deemed to
pose a compliance risk, for example, based on negative news screening and/or internet searches.
Before completing the account verification process, Users must first register an account
on the BAM Trading Platform and generate login credentials. Account registration by itself does
not authorize Users to trade.
The Compliance Team maintains separate account verification processes for retail and
institutional Users. Retail Users may choose from three levels of verification to access various
trading abilities, including fiat trading:
•
Basic Verification permits Users to deposit and withdraw digital assets, sets a daily
withdrawal limit of up to the digital asset equivalent of USD 5,000, and allows
customers to trade crypto-to-crypto pairs. It does not, however, allow fiat deposits or
Those include Merit Peak Limited and Sigma Chain AG, which we understand to have as a beneficial
owner Changpeng Zhao.
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PURSUANT TO 17 C.F.R. § 200.withdrawals or fiat-to-crypto trading. As part of the Basic Verification process, BAM
Trading assesses a User’s full name and address. BAM Trading uses a third party
provider, Acuant, to verify the User’s name and address information and to conduct
sanctions screening. If the customer fails one or more checks, then a BAM Trading
Compliance analyst will manually review the information and ask the User to submit a
government-issued ID, proof of address, and photo through the ZenDesk customer
service platform for verification by the third-party compliance verification services
provider, Jumio.
•
Advanced Verification permits the above activities, allows deposits of up to the digital
asset equivalent of USD 5,000, and increases the daily digital asset withdrawal limit to
the digital asset equivalent of USD 1 million. Like Basic Verification, it does not allow
fiat deposits/withdrawals or fiat-to-crypto trading. Advanced Verification requires the
User’s proof of address, government-issued ID, and a photo for verification by Jumio.
If Jumio is unable to verify all submitted documents, then a BAM Trading Compliance
analyst will manually review them and may ask the User to re-submit any documents
(e.g., if the photo is blurry or proof of address is out of date), disable the User’s account,
or refer the case to the BAM Trading investigations team for review of unusual KYC
activity.
•
USD Account Verification (also known as “Cash Account Verification”) permits the
above activities and allows USD deposits/withdrawals for fiat-to-crypto trading. BAM
Trading contracts with third-party vendor Prime Trust for USD account verification and
USD custody services. Users must create a Prime Trust Account and submit answers
to a questionnaire regarding their sources of assets and anticipated trading activity.
Institutional (corporate) Users have a separate account verification process. Corporate
Account Verification permits institutional Users to deposit and withdraw both digital assets and
USD and allows trading for all digital asset and USD pairs. Institutional clients have negotiated
deposit/withdrawal limits, access to the OTC Trading Portal, flexible API limits, and 24/7 customer
support. The Compliance Team has discretion to increase an institutional User’s trading limits.
For the Corporate Account Verification Process, potential institutional Users must submit
a completed Google Form questionnaire to BAM Trading and complete identification verification
through Jumio. Institutional clients are required to submit documentation regarding their formation,
corporate governance, proof of address, bank verification, organizational charts, ultimate
beneficial owners (“UBOs”), and source of funds. They must also complete a UBO form and
present documentation for each UBO. As part of its compliance due diligence process for
institutional Users, the Compliance Team may conduct enhanced due diligence (“EDD”) of
institutional Users deemed to be higher-risk because of actual or anticipated transaction activity,
ownership structure, anticipated and actual trading volume and transaction types, and
involvement in transactions involving high-risk jurisdictions. EDD may include identifying and
verifying the beneficial owner(s) of legal entities, negative news and internet searches, collecting
and analyzing information on the source of funds and/or purpose of transactions, assessing
expected transaction activity, and any other known facts about the customer. The Compliance
Team uses the online tool Refinitiv World-Check One to screen institutional Users and associated
parties against Office of Foreign Assets Control (“OFAC”) and non-U.S. sanctions lists. BAM
Trading requires institutional Users to use a business bank account registered under the same
business name for any fiat deposits or withdrawals.
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PURSUANT TO 17 C.F.R. § 200.B.
Transaction Monitoring
BAM Trading has a transaction monitoring program that is designed to prevent and detect
money laundering, terrorist financing, and other financial crimes in compliance with applicable
laws and regulations. The transaction monitoring program is part of BAM Trading’s more general
Bank Secrecy Act/Anti-money laundering program (BSA/AML Program), which applies to all BAM
Trading business activities and personnel (including any third-party service providers) and is
overseen by BAM Trading’s BSA Compliance Officer. The transaction monitoring program
applies to all transactions conducted through the BAM Trading Platform, including all USD and
digital asset deposits, withdrawals, and trades. Under the transaction monitoring program, all
transactions are monitored and alerts regarding potential suspicious or fraudulent activity are
generated for review by the Compliance Team. If necessary, the Compliance Team conducts
further investigation.
BAM Trading utilizes Acuant (formerly IdentityMind), Elliptic Navigator, and USA
NewAdmin for transaction monitoring and related services.
•
Acuant: Acuant serves as BAM Trading’s transaction monitoring, alert, and case
management system. Acuant monitors transactions and generates a set of tailored
alerts based on certain suspicious activity triggers.
•
Elliptic Navigator: Elliptic Navigator is BAM Trading’s third-party blockchain analytics
tool that screens wallet addresses against a known list of wallet addresses linked to
illicit activity.
•
USA NewAdmin: USA NewAdmin provides back-end systems services to BAM
Trading, documenting trading activity on the BAM Trading Platform. The Compliance
Team uses USA NewAdmin to review potential suspicious on-platform activity.
Alongside these third-party transaction monitoring services, the Compliance Team
monitors transactions for “red flag” activities, including trading that may suggest that a transaction
is being structured to avoid financial thresholds, unusually large transactions, extremely rapid
movements of funds, transactions involving OFAC-sanctioned countries or persons, and
fraudulent KYC documents, as well as the list of indicators of virtual currency abuse published by
the Financial Crimes Enforcement Network in May 2019.
All generated alerts are reviewed by the Compliance Team. During the initial case review
of an alert, the Compliance Team reviews any alerts associated with a transaction and any
materials related to the alerts, the relevant User’s account opening and KYC information, and
transaction details, and undertake additional investigative steps as warranted, including
requesting additional information from the relevant User through Zendesk.
Following its review procedures, the Compliance Team will determine whether a User’s
activity should be deemed “suspicious,” that is, activity indicating the possibility of transactions
designed to evade the BSA and its regulations, transactions that serve no business or lawful
purpose, or transactions that attempt to use BAM Trading to facilitate criminal activity. After
determining that a transaction or activity is suspicious, the BAM Trading compliance analyst
working on the case prepares a Suspicious Activity Report (“SAR”) determination synopsis which
summarizes the suspicious nature of the transaction or activity, and drafts the narrative section
of the SAR, both of which are sent to the relevant Compliance Team member. If the analyst
FOIA CONFIDENTIAL TREATMENT REQUESTED BY BAM
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BY BAM TRADING SERVICES INC.
PURSUANT TO 17 C.F.R. § 200.determines that the transaction or activity is not suspicious, the analyst prepares a No-SAR
determination synopsis, summarizing why the transaction or activity is not suspicious, and then
that synopsis is sent to BAM Trading’s BSA Compliance Officer.
A SAR will be filed if BAM Trading knows, suspects, or has reason to suspect that a
transaction involves funds derived from illegal activity as part of a plan to violate or evade any
federal law or regulation, is structured to evade any requirement of 31 C.F.R. Chapter X, has no
apparent economic or lawful purpose, or involves the use of BAM Trading to facilitate criminal
activity. It is also BAM Trading’s policy to file a voluntary SAR for any transaction that it considers
relevant to a possible violation of law.
SEC Request No. 28: Documents sufficient to explain how any digital asset transactions made
using the BAM Trading Platform are published to the digital assets’ blockchains and the roles,
involvement, or inputs of any Person(s) (including entities).
Response to SEC Request No. Binance.com serves as custodian for all of BAM Trading’s Users’ digital assets and, BAM
Trading understands that, pursuant to the terms of that agreement, Binance.com provides certain
services. As custodian for BAM Trading, Binance.com maintains segregated wallets for each
digital asset listed for trading on the BAM Trading Platform. For security reasons, all of BAM
Trading’s Users’ digital assets of each type are pooled together in the omnibus hot wallet. Within
each omnibus wallet is an internal ledger referred to as the PNK, where individual Users’ asset
balances are tracked based upon unique deposit addresses and memoranda. As Users buy and
sell digital assets on the BAM Trading Platform, these transactions are not published on the
blockchain, but rather individual transactions are programmatically reconciled with debits and
credits within the omnibus wallets for each asset, resulting in adjustments to the internal ledger.
The transaction information about each purchaser or sale on the BAM Trading Platform is stored
within a database on the Platform. Users can then utilize BAM Trading’s API to access their
trading data, which translates the transaction code in the database into a user-friendly format.
While transactions on the BAM Trading Platform itself occur “off-chain,” transactions are
published to the blockchain for each respective digital asset on the BAM Trading Platform at the
time that funds are either deposited or withdrawn from a User’s digital asset wallet on the Platform
to an external digital wallet.
SEC Request No. 29: Documents sufficient to explain each step in the chain of custody of funds
or digital assets for all types of transactions or transfers available on the BAM Trading Platform
(e.g., staking, fiat transactions, digital asset transactions) and the roles, involvement, or inputs of
any Person(s) (including entities), including but not limited to, any exclusive or shared control or
custody of digital assets.
Response to SEC Request No. BAM Trading has contracted with service providers for both USD currency and digital
asset custody services, as described further below. For USD custody services, BAM Trading
uses Prime Trust pursuant to a services agreement. For digital asset custody services, BAM
Trading uses Binance.com.
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PURSUANT TO 17 C.F.R. § 200.I.
Fiat Transactions
Prime Trust provides USD custody and transmission services to its U.S. users. In order
to purchase digital assets with USD, or receive USD in exchange for digital assets on the BAM
Trading Platform, a User must also create a Prime Trust Account as discussed further in the
Response to SEC Request No. 22. Once verified, Prime Trust issues the User an individual Prime
Trust Account, which can be used to facilitate trades on the BAM Trading Platform. BAM
Trading’s Users transfer USD into Prime Trust’s omnibus accounts, which are held at various
FDIC-insured banks. Prime Trust is the custodian for all User funds underlying their Prime Trust
Account in a manner that ensures eligibility for FDIC pass-through insurance coverage through
the use of the Insured Cash Sweep service administered by Promontory Interfinancial Network.
The deposits held in Prime Trust’s omnibus accounts are also eligible for up to $250,000 of FDIC
pass-through insurance coverage per beneficial owner.
At no point does BAM Trading hold or transmit USD on behalf of retail Users. BAM
Trading’s activities with respect to the USD deposits held by Prime Trust are limited to providing
instructions (via the integration of the Prime Trust API with the BAM Trading Platform) for the
transfer of funds among Users’ Prime Trust Accounts to assist in the settlement of trades. The
chain of custody of a representative trade involving USD and digital assets using a Prime Trust
account was previously provided at Diagram 4 in the Response to Request Nos. 23, 24 and 27.
See BTS00037797 - BTS00037798.
II.
Digital Asset Transactions
As explained in the Response to SEC Request No. 22, BAM Trading has entered into a
Wallet Custody Agreement for certain digital asset custody services and technical support
services to BAM Trading, including custody concerning the digital assets in User’s wallets on the
BAM Trading Platform. As the digital asset custodian for BAM Trading, Binance.com maintains
cybersecurity controls over the key and wallet creation process. These wallets are located on
U.S. servers and hosted on the cloud, via Amazon Web Services.
Digital assets flow from the User’s external digital wallet into their BAM Trading Wallet,
where the funds are then held in an omnibus hot wallet associated with each individual digital
asset. The User’s individual holdings of each digital asset are tracked on an internal ledger. The
assets in the omnibus wallets are held in custody by Binance.com. The digital assets remain
within this hot wallet structure until the digital assets are eventually removed to the User’s external
digital wallet. The chain of custody of a representative trade involving digital assets was
previously discussed at Diagram 5 in the Response to Request Nos. 23, 24 and 27. See
BTS00037798 - BTS00037799.
BAM Trading will provide more information about its staking-related services in connection
with the forthcoming Response to SEC Request No. 40.
FOIA CONFIDENTIAL TREATMENT REQUESTED BY BAM
BTS00058743
Page 19 G GOODWIN
Grant P. Fondo
+1 650 752 GFondo@goodwinlaw.com
Goodwin Procter LLP
601 Marshall Street
Redwood City, CA
Meghan K. Spillane
+1 212 459 MSpillane@goodwinlaw.com
The New York Times Building
620 Eighth Avenue
New York, NY goodwinlaw.com
July 9,
CONFIDENTIAL TREATMENT REQUESTED
BY BAM TRADING SERVICES INC.
PURSUANT TO 17 C.F.R. § 200.
BY FEDERAL EXPRESS AND EMAIL (RULE 83CTRS@SEC.GOV)
Freedom of Information Act Officer
Office of Freedom of Information and Privacy Act Operations
U.S. Securities and Exchange Commission
100 F Street, NE
Mail Stop Washington, DC Re:
In the Matter of Binance.US (HO-13865)
Dear Sir/Madam:
The undersigned represent BAM Trading Services Inc. (“BAM Trading”) in the above captioned
matter. Pursuant to Securities and Exchange Commission Rule 83, 17 C.F.R. § 200.83, we formally
request that the U.S. Securities and Exchange Commission (the “Commission”) afford confidential
treatment to our July 9, 2021 letter to Kathleen Hitchins, Senior Counsel, Division of Enforcement, Batesstamped BTS00042025 – BTS00042034 and documents produced under cover of that letter and the
exhibit thereto, Bates-stamped BTS00042037 - BTS00058743. A copy of our letter to Ms. Hitchins is
enclosed in an envelope marked “FOIA Confidential Treatment Requested.” This request also applies to
any transcripts, notes, memoranda, or other materials of any sort which are made by any employee of
the Commission or any other governmental agency and which incorporate, refer, or relate to the letter
and enclosed documents (collectively, the letter dated July 9, 2021 and the documents enclosed therein,
and any materials referring to the letter and the contents of the enclosed documents are referred to herein
as the “Confidential Materials”).
All of the Confidential Materials contain or constitute confidential information. We therefore
request and expect that all of the Confidential Materials will be kept in a non-public file and that access
to the Confidential Materials by any third party not a member of the Commission or its staff will be denied.
Should the Commission receive any request for the Confidential Materials, whether pursuant to the
Freedom of Information Act, 5 U.S.C. § 522, or otherwise, we understand and expect that we will be
given an opportunity to object to such a disclosure. Moreover, should the Commission be inclined to
disclose the Confidential Materials to any third party not a member of the Commission or its staff, it is our
expectation and request that, in accordance with normal Commission practice, we will be given ten
FOIA CONFIDENTIAL TREATMENT REQUESTED BY BAM
BTS00042035
Page 20 G GOODWIN
FOIA Officer
July 9, Page
CONFIDENTIAL TREATMENT REQUESTED
BY BAM TRADING SERVICES INC.
PURSUANT TO 17 C.F.R. § 200.
business days’ advance notice of any such intent by the Commission so that our client may pursue any
available remedies. In that event, we further request that you telephone undersigned counsel immediately
in addition to sending the required notice by mail.
On behalf of BAM Trading, we request an acknowledgement of receipt of this written request that
information not be disclosed under FOIA. Kindly acknowledge receipt of this letter by signing and dating
the enclosed copy and returning it to Meghan K. Spillane in the enclosed self-addressed, stamped
envelope.
Please contact any of us at the numbers provided above should you have any questions or
concerns about this request for confidential treatment.
Sincerely,
/s/ Grant P. Fondo
Grant P. Fondo
Meghan K. Spillane
cc:
Kathleen Hitchins, Senior Counsel, U.S. Securities and Exchange Commission
Paul Kim, Assistant Director, U.S. Securities and Exchange Commission
Ann Rosenfield, Senior Counsel, U.S. Securities and Exchange Commission
Adam Gottlieb, Senior Counsel, U.S. Securities and Exchange Commission
Matthew Solomon, Cleary Gottlieb Steen & Hamilton LLP
Alexander Janghorbani, Cleary Gottlieb Steen & Hamilton LLP
Acknowledged by: _______________________
Date: _________________________________
FOIA CONFIDENTIAL TREATMENT REQUESTED BY BAM
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Page 21
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