Milbank LLP successfully represented BAM Management US Holdings Inc. and BAM Trading Services Inc., the operator of Binance.US, a leading cryptocurrency trading platform for US residents, in an enforcement action brought by the US Securities and Exchange Commission in the US District Court for the District of Columbia. On June 5, 2023, the SEC filed an extensive complaint alleging that BAM’s platform facilitates the trading of securities without proper registration as an exchange, broker-dealer, or clearing agency. The SEC also alleged that BAM committed fraud in the offer and sale of securities, including in its fundraising and sales to retail purchasers, through misrepresentations concerning its surveillance systems and volume of trading on its platform.
On May 29, 2025, the SEC agreed to dismiss all claims against BAM with prejudice.
This case addressed critical questions at the intersection of securities law and the rapidly evolving cryptocurrency industry, with implications for the regulation of the multi-trillion-dollar market. At the heart of the dispute was the SEC’s assertion that certain cryptocurrencies qualify as securities subject to its oversight. The resolution of this case sets a precedent for the SEC’s authority over the broader cryptocurrency industry, shaping the future of regulation in this space.
The Milbank team was led by George Canellos, global head of Milbank’s Litigation & Arbitration Group, and Litigation & Arbitration partner Matt Laroche and included associates Allison Kempf and Lucy Baeurle. The Milbank team worked alongside co-counsel at Katten Muchin Rosenman LLP and WilmerHale.
