Binance Motion Rejected: Judge Refutes SEC Claims of Misleading Statements

Judge Rejects Motion to Prevent SEC from Making Public Statements

A federal judge presiding over the dispute between Binance.US, Binance Holdings Limited and CEO Changpeng “CZ” Zhao and the United States Securities and Exchange Commission (SEC) has rejected a motion that could have prevented the SEC from making public statements about the case.

In a decision from the U.S. District Court for the District of Columbia on June 26, Judge Amy Berman Jackson suggested that it was not necessary for the court to intervene in the motion submitted by those associated with Binance and Binance.US. On June 21, the legal team had filed a motion claiming that the SEC had misled the American public in its statements about the securities lawsuit, which had the potential to “contaminate the jury pool” and introduce “unnecessary confusion into the market”.

Judge Jackson stated that while all lawyers involved must abide by their ethical obligations, it is not necessary or appropriate for the Court to intervene to reinforce this point or to edit the parties’ press releases. Furthermore, the agency’s public relations activities thus far have not had a significant impact on the proceedings of the case.

The origin of the complaint was a press release from the SEC on June 17th, in which Gurbir Grewal, the enforcement director, asserted that CZ and Binance had the power to “mix customer funds or use customer funds as they wished”. The legal teams from Binance and Binance.US said the SEC’s statements were “misleading” and mostly rejected the accusations.

Binance Facing Legal Proceedings Despite Global Expansion

Binance has retracted its choice to remove privacy coins from its platform in Europe.

The SEC filed a lawsuit on June 5th against Binance, Binance.US, and CZ, alleging that the exchanges had provided unregistered securities to US customers, and that Binance had failed to register as an exchange or broker-dealer clearing agency. Initially, the federal regulator sought to have the court freeze all assets of Binance.US, but eventually they reached an agreement allowing only the exchange’s employees to access client funds.

Amid ongoing U.S. legal proceedings, Binance has still been able to expand its global operations, announcing on June 20 the launch of a regulated crypto platform in Kazakhstan. However, three days later, the Belgian Financial Services and Markets Authority commanded the exchange to cease providing crypto exchange and custody wallet services, and Binance has allegedly withdrawn its application with Austria’s financial regulatory body.

Magazine: Reclaim Your Funds: The Unusual Realm of Cryptocurrency Litigation.