SECURITIES AND EXCHANGE COMMISSION v. BINANCE HOLDINGS LIMITED et al Document 198

District Of Columbia District Court
Case No. 1:23-cv-01599-ABJ-ZMF
Filed December 15, 2023

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Page 1 UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLUMBIA
SECURITIES AND EXCHANGE
COMMISSION,
Plaintiff,
v.
No. 1-23-cv-01599-ABJ-ZMF
BINANCE HOLDINGS LIMITED,
BAM TRADING SERVICES INC.,
BAM MANAGEMENT US HOLDINGS
INC., AND CHANGPENG ZHAO,
Defendants.
JOINT STATUS REPORT
Pursuant to the Court’s direction at the November 27 hearing, Plaintiff Securities and
Exchange Commission (“SEC”), and Defendants BAM Management US Holdings Inc., BAM
Trading Services Inc. (collectively, “BAM”), Binance Holdings Limited (“Binance” or “BHL”),
and Changpeng Zhao, respectfully submit this Joint Status Report.
I.
BAM-Related Discovery
A. Document Discovery
BAM is continuing to produce documents and communications in response to the SEC’s
September 21, 2023 requests, including productions within the last several weeks that the SEC is
processing, reviewing, and (for many documents where necessary) translating.
For certain
requests for Slack communications, BAM encountered technical issues processing data that have
resulted in delays. BAM has resolved those issues and is reviewing communications potentially
responsive to the SEC’s requests. In addition, BAM is evaluating whether there are certain

Page 2 responsive chats stored on devices within its possession, custody, and control but has not yet
identified any such communications. The SEC and BAM are continuing to meet and confer on
the SEC’s document requests, including as to whether specific document requests have been
reasonably satisfied and the anticipated completion date for all productions. The SEC reserves the
right to pursue further production of documents and communications consistent with the Consent
Order, and BAM reserves the right to ask the Court to end expedited discovery with respect to
BAM once BAM believes it has reasonably satisfied the SEC’s requests. The parties will continue
to attempt to narrow any disputes about BAM’s responses to the SEC’s document requests before
the next status report to the Court.
B. Depositions
Since the November 27 hearing, the SEC has taken four additional depositions of BAM
personnel and is scheduled to take another deposition on December 15. One of those fact witnesses
was also designated as a Rule 30(b)(6) deponent for one noticed topic. The parties will continue
to meet and confer on the scope of topics in the SEC’s Rule 30(b)(6) deposition notice after the
inspection of BAM’s systems and software. BAM reserves the right to object to any additional
Rule 30(b)(6) deposition following the meet and confer process and in light of the information
provided to the SEC through other discovery and depositions.
After completing the meet and confer process for the Rule 30(b)(6) deposition or
completing that deposition, whichever is later, consistent with the Court’s direction at the
September 18 hearing, the parties will submit to the Court their positions on the SEC’s pending
requests for the depositions of BAM’s former CEO and CFO. The SEC reserves the right to seek
additional deposition testimony from BAM personnel, including those already deposed, based on
ongoing discovery, including documents and communications the SEC did not receive until after

Page 3 the relevant deposition took place, or that were produced shortly before a deposition such that the
SEC lacked sufficient time to include in the examination of relevant witnesses. BAM objects to
deposing additional witnesses or re-deposing witnesses, and believes that the SEC has had
adequate time to review documents and prepare to question witnesses about pertinent topics.
The parties will continue to meet and confer and attempt to narrow any disagreements
regarding depositions before the next status report to the Court.
C. Inspection
On December 14, BAM proposed that the requested inspection of its technology
infrastructure, systems, and software take place virtually at 7 pm ET on December 21, and the SEC
is currently considering BAM’s proposal. The parties will continue to meet and confer and attempt
to narrow any disagreements on the scope, timing, and process of the inspection before the next
status report to the Court.
D. Part IV of Consent Order
BAM has agreed to consider providing information in response to the SEC’s remaining
questions regarding information produced pursuant to Part IV of the Consent Order. The parties
will meet and confer on these issues and will report on any disputes in the next status report to the
Court.
II.
Binance/Zhao-Related Discovery
A. Document Productions
BHL has produced System and Organization Controls (“SOC”) reports that BAM’s CISO
described in his deposition and has also agreed to consider the SEC’s request for any other SOC
reports that apply to technological infrastructure, systems, and software relevant to BAM’s
customer or corporate assets. BHL has also agreed to consider producing chat messages over

Page 4 which BAM confirmed at the last hearing it does not have possession, custody, or control, and the
SEC has agreed to identify parameters for this request to help facilitate BHL’s search for
responsive documents. Before the next status report to the Court, the parties will also continue to
meet and confer concerning the SEC’s requests. 1 The SEC reserves the right to pursue further
production of documents and communications, and BHL and Mr. Zhao likewise reserve the right
to object.
B. Depositions
BHL has proposed producing a fact witness to address the issues regarding access to
BAM’s customer and corporate crypto assets discussed at the last hearing, subject to certain
conditions the parties are negotiating. Before the next status report to the Court, the parties will
meet and confer and seek to schedule the date and location of this deposition. The SEC plans to
also seek deposition testimony from other BHL and Zhao-related fact and corporate representative
witnesses, including those the SEC previously noticed. BHL and Mr. Zhao reserve the right to
object to such deposition requests. The parties will continue to meet and confer and attempt to
narrow any disagreements regarding the scope, timing, location, and number of depositions.
III.
Proposed Protective Order
On December 12, 2023, the SEC asked Defendants to propose a protective order to address
Defendants’ concerns about the confidentiality of their information as well as the Court’s
November 14, 2023 Minute Order, and Defendants intend to do so.

The SEC continues to reserve the right to seek further relief from the Court if the parties are
unable to resolve pending issues regarding Binance’s productions in response to Section IV of
the Consent Order. See SEC Memo. Supp. Mot. to Compel, at 15 n.4, Dkt. No. 114-1. Pending
issues include Binance’s continued withholding of information required under Section IV
pending entry of a protective order.

Page 5 IV.
Proposed Status Update
The parties propose providing the Court with the next status report on January 25, 2023.
The parties reserve the right to seek a hearing with the Court sooner if necessary to resolve ongoing
disputes.
Dated: December 15,
Respectfully submitted,
/s/ Daniel W. Nelson
Daniel W. Nelson (D.C. Bar #433415)
Richard W. Grime
Jason J. Mendro (D.C. Bar #482040)
Stephanie Brooker
M. Kendall Day
GIBSON, DUNN & CRUTCHER LLP
1050 Connecticut Avenue, NW
Washington, D.C. 20036-DNelson@gibsondunn.com
RGrime@gibsondunn.com
JMendro@gibsondunn.com
SBrooker@gibsondunn.com
KDay@gibsondunn.com
/s/ Matthew Scarlato
Matthew F. Scarlato (D.C. Bar No. 484124)
Jennifer L. Farer (D.C. Bar No. 1013915)
David A. Nasse
SECURITIES AND EXCHANGE
COMMISSION
100 F Street, NE
Washington, DC 20549-(202) 551-3749 (Scarlato)
nassed@sec.gov
farerj@sec.gov
scarlatom@sec.gov
J. Emmett Murphy
Jorge G. Tenreiro
Elisa S. Solomon
SECURITIES AND EXCHANGE
COMMISSION
100 Pearl Street
New York, NY (212) 336-0078 (Murphy)
murphyjoh@sec.gov
tenreiroj@sec.gov
solomonel@sec.gov
Attorneys for Defendant Binance
Holdings Limited
Attorneys for Plaintiff Securities and
Exchange Commission

Page 6 /s/ Abid Qureshi
Abid R. Qureshi (D.C. Bar No. 459227)
William R. Baker, III (D.C. Bar No.
383944)
Erik S. Volkman (D.C. Bar No. 490999)
Michael E. Bern (D.C. Bar No. 994791)
LATHAM & WATKINS LLP
555 Eleventh Street, NW, Suite Washington, DC Tel: (202) 637-Fax: (202) 637-abid.qureshi@lw.com
william.baker@lw.com
eric.volkman@lw.com
michael.bern@lw.com
Douglas K. Yatter
Benjamin Naftalis
LATHAM & WATKINS LLP
1271 Avenue of the Americas
New York, NY Tel: (212) 906-Fax: (212) 751-douglas.yatter@lw.com
benjamin.naftalis@lw.com
Heather A. Waller
LATHAM & WATKINS LLP
330 North Wabash Avenue, Suite Chicago, IL Tel: (312) 876-Fax: (312) 993-heather.waller@lw.com
/s/ Matthew T. Martens
Matthew T. Martens
William R. McLucas
WILMER CUTLER PICKERING HALE AND
DORR LLP
2100 Pennsylvania Avenue NW
Washington, DC (202) 663-Fax: (202) 663-matthew.martens@wilmerhale.com
william.mclucas@wilmerhale.com
Tiffany J. Smith
WILMER CUTLER PICKERING HALE
AND DORR LLP
7 World Trade Center
250 Greenwich Street
New York, NY tiffany.smith@wilmerhale.com
George S. Canellos
Matthew Laroche
MILBANK LLP
55 Hudson Yards
New York, NY 10001-212-530-gcanellos@milbank.com
mlaroche@milbank.com
Attorneys for Defendants BAM Trading Services
Inc. and BAM Management Holdings
US Inc.
Melanie M. Blunschi
LATHAM & WATKINS LLP
505 Montgomery Street, Suite San Francisco, CA 94111-Tel: (415) 391-Fax: (415) 395-melanie.blunschi@lw.com
Attorneys for Defendant Changpeng Zhao

PDF Page 1	PlainSite Cover Page

PDF Page 2	Case 1:23-cv-01599-ABJ-ZMF Document 198 Filed 12/15/23 Page 1 of 6 UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA SECURITIES AND EXCHANGE COMMISSION, Plaintiff, v. No. 1-23-cv-01599-ABJ-ZMF BINANCE HOLDINGS LIMITED, BAM TRADING SERVICES INC., BAM MANAGEMENT US HOLDINGS INC., AND CHANGPENG ZHAO, Defendants. JOINT STATUS REPORT Pursuant to the Court’s direction at the November 27 hearing, Plaintiff Securities and Exchange Commission (“SEC”), and Defendants BAM Management US Holdings Inc., BAM Trading Services Inc. (collectively, “BAM”), Binance Holdings Limited (“Binance” or “BHL”), and Changpeng Zhao, respectfully submit this Joint Status Report. I. BAM-Related Discovery A. Document Discovery BAM is continuing to produce documents and communications in response to the SEC’s September 21, 2023 requests, including productions within the last several weeks that the SEC is processing, reviewing, and (for many documents where necessary) translating. For certain requests for Slack communications, BAM encountered technical issues processing data that have resulted in delays. BAM has resolved those issues and is reviewing communications potentially responsive to the SEC’s requests. In addition, BAM is evaluating whether there are certain 1

PDF Page 3	Case 1:23-cv-01599-ABJ-ZMF Document 198 Filed 12/15/23 Page 2 of 6 responsive chats stored on devices within its possession, custody, and control but has not yet identified any such communications. The SEC and BAM are continuing to meet and confer on the SEC’s document requests, including as to whether specific document requests have been reasonably satisfied and the anticipated completion date for all productions. The SEC reserves the right to pursue further production of documents and communications consistent with the Consent Order, and BAM reserves the right to ask the Court to end expedited discovery with respect to BAM once BAM believes it has reasonably satisfied the SEC’s requests. The parties will continue to attempt to narrow any disputes about BAM’s responses to the SEC’s document requests before the next status report to the Court. B. Depositions Since the November 27 hearing, the SEC has taken four additional depositions of BAM personnel and is scheduled to take another deposition on December 15. One of those fact witnesses was also designated as a Rule 30(b)(6) deponent for one noticed topic. The parties will continue to meet and confer on the scope of topics in the SEC’s Rule 30(b)(6) deposition notice after the inspection of BAM’s systems and software. BAM reserves the right to object to any additional Rule 30(b)(6) deposition following the meet and confer process and in light of the information provided to the SEC through other discovery and depositions. After completing the meet and confer process for the Rule 30(b)(6) deposition or completing that deposition, whichever is later, consistent with the Court’s direction at the September 18 hearing, the parties will submit to the Court their positions on the SEC’s pending requests for the depositions of BAM’s former CEO and CFO. The SEC reserves the right to seek additional deposition testimony from BAM personnel, including those already deposed, based on ongoing discovery, including documents and communications the SEC did not receive until after 2

PDF Page 4	Case 1:23-cv-01599-ABJ-ZMF Document 198 Filed 12/15/23 Page 3 of 6 the relevant deposition took place, or that were produced shortly before a deposition such that the SEC lacked sufficient time to include in the examination of relevant witnesses. BAM objects to deposing additional witnesses or re-deposing witnesses, and believes that the SEC has had adequate time to review documents and prepare to question witnesses about pertinent topics. The parties will continue to meet and confer and attempt to narrow any disagreements regarding depositions before the next status report to the Court. C. Inspection On December 14, BAM proposed that the requested inspection of its technology infrastructure, systems, and software take place virtually at 7 pm ET on December 21, and the SEC is currently considering BAM’s proposal. The parties will continue to meet and confer and attempt to narrow any disagreements on the scope, timing, and process of the inspection before the next status report to the Court. D. Part IV of Consent Order BAM has agreed to consider providing information in response to the SEC’s remaining questions regarding information produced pursuant to Part IV of the Consent Order. The parties will meet and confer on these issues and will report on any disputes in the next status report to the Court. II. Binance/Zhao-Related Discovery A. Document Productions BHL has produced System and Organization Controls (“SOC”) reports that BAM’s CISO described in his deposition and has also agreed to consider the SEC’s request for any other SOC reports that apply to technological infrastructure, systems, and software relevant to BAM’s customer or corporate assets. BHL has also agreed to consider producing chat messages over 3

PDF Page 5	Case 1:23-cv-01599-ABJ-ZMF Document 198 Filed 12/15/23 Page 4 of 6 which BAM confirmed at the last hearing it does not have possession, custody, or control, and the SEC has agreed to identify parameters for this request to help facilitate BHL’s search for responsive documents. Before the next status report to the Court, the parties will also continue to meet and confer concerning the SEC’s requests. 1 The SEC reserves the right to pursue further production of documents and communications, and BHL and Mr. Zhao likewise reserve the right to object. B. Depositions BHL has proposed producing a fact witness to address the issues regarding access to BAM’s customer and corporate crypto assets discussed at the last hearing, subject to certain conditions the parties are negotiating. Before the next status report to the Court, the parties will meet and confer and seek to schedule the date and location of this deposition. The SEC plans to also seek deposition testimony from other BHL and Zhao-related fact and corporate representative witnesses, including those the SEC previously noticed. BHL and Mr. Zhao reserve the right to object to such deposition requests. The parties will continue to meet and confer and attempt to narrow any disagreements regarding the scope, timing, location, and number of depositions. III. Proposed Protective Order On December 12, 2023, the SEC asked Defendants to propose a protective order to address Defendants’ concerns about the confidentiality of their information as well as the Court’s November 14, 2023 Minute Order, and Defendants intend to do so. 1 The SEC continues to reserve the right to seek further relief from the Court if the parties are unable to resolve pending issues regarding Binance’s productions in response to Section IV of the Consent Order. See SEC Memo. Supp. Mot. to Compel, at 15 n.4, Dkt. No. 114-1. Pending issues include Binance’s continued withholding of information required under Section IV pending entry of a protective order. 4

PDF Page 6	Case 1:23-cv-01599-ABJ-ZMF Document 198 Filed 12/15/23 Page 5 of 6 IV. Proposed Status Update The parties propose providing the Court with the next status report on January 25, 2023. The parties reserve the right to seek a hearing with the Court sooner if necessary to resolve ongoing disputes. Dated: December 15, 2023 Respectfully submitted, /s/ Daniel W. Nelson Daniel W. Nelson (D.C. Bar #433415) Richard W. Grime Jason J. Mendro (D.C. Bar #482040) Stephanie Brooker M. Kendall Day GIBSON, DUNN & CRUTCHER LLP 1050 Connecticut Avenue, NW Washington, D.C. 20036-5306 DNelson@gibsondunn.com RGrime@gibsondunn.com JMendro@gibsondunn.com SBrooker@gibsondunn.com KDay@gibsondunn.com /s/ Matthew Scarlato Matthew F. Scarlato (D.C. Bar No. 484124) Jennifer L. Farer (D.C. Bar No. 1013915) David A. Nasse SECURITIES AND EXCHANGE COMMISSION 100 F Street, NE Washington, DC 20549-9040 (202) 551-3749 (Scarlato) nassed@sec.gov farerj@sec.gov scarlatom@sec.gov J. Emmett Murphy Jorge G. Tenreiro Elisa S. Solomon SECURITIES AND EXCHANGE COMMISSION 100 Pearl Street New York, NY 10004 (212) 336-0078 (Murphy) murphyjoh@sec.gov tenreiroj@sec.gov solomonel@sec.gov Attorneys for Defendant Binance Holdings Limited Attorneys for Plaintiff Securities and Exchange Commission 5

PDF Page 7	Case 1:23-cv-01599-ABJ-ZMF Document 198 Filed 12/15/23 Page 6 of 6 /s/ Abid Qureshi Abid R. Qureshi (D.C. Bar No. 459227) William R. Baker, III (D.C. Bar No. 383944) Erik S. Volkman (D.C. Bar No. 490999) Michael E. Bern (D.C. Bar No. 994791) LATHAM & WATKINS LLP 555 Eleventh Street, NW, Suite 1000 Washington, DC 20004 Tel: (202) 637-2200 Fax: (202) 637-2201 abid.qureshi@lw.com william.baker@lw.com eric.volkman@lw.com michael.bern@lw.com Douglas K. Yatter Benjamin Naftalis LATHAM & WATKINS LLP 1271 Avenue of the Americas New York, NY 10020 Tel: (212) 906-1200 Fax: (212) 751-4864 douglas.yatter@lw.com benjamin.naftalis@lw.com Heather A. Waller LATHAM & WATKINS LLP 330 North Wabash Avenue, Suite 2800 Chicago, IL 60611 Tel: (312) 876-7700 Fax: (312) 993-9767 heather.waller@lw.com /s/ Matthew T. Martens Matthew T. Martens William R. McLucas WILMER CUTLER PICKERING HALE AND DORR LLP 2100 Pennsylvania Avenue NW Washington, DC 20037 (202) 663-6921 Fax: (202) 663-6363 matthew.martens@wilmerhale.com william.mclucas@wilmerhale.com Tiffany J. Smith WILMER CUTLER PICKERING HALE AND DORR LLP 7 World Trade Center 250 Greenwich Street New York, NY 10007 tiffany.smith@wilmerhale.com George S. Canellos Matthew Laroche MILBANK LLP 55 Hudson Yards New York, NY 10001-2163 212-530-5792 gcanellos@milbank.com mlaroche@milbank.com Attorneys for Defendants BAM Trading Services Inc. and BAM Management Holdings US Inc. Melanie M. Blunschi LATHAM & WATKINS LLP 505 Montgomery Street, Suite 2000 San Francisco, CA 94111-6538 Tel: (415) 391-0600 Fax: (415) 395-8095 melanie.blunschi@lw.com Attorneys for Defendant Changpeng Zhao 6


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