In a recent development surrounding the ongoing litigation between the SEC and major crypto exchange Binance, the legal team representing the defendants has taken an aggressive stance by accusing the regulator of engaging in unethical conduct. This move aligns Binance with Ripple, another prominent crypto company currently embroiled in a legal battle with the SEC.
According to attorney and legal expert James Murphy, popularly known as MetaLawMan, the recent motion filed by Binance's lawyers signifies a significant turning point in the case. The exchange alleges that the regulator violated court rules by making false statements outside of the courtroom, which were specifically intended to harm Binance US' customers and potentially influence the jury pool.
One of the key contentions raised is the SEC's issuance of a misleading press release after an order agreed upon by both parties. The press release claimed that the regulator had obtained "emergency relief" and made allegations against Changpeng Zhao, the head of the exchange, regarding the mishandling of customer assets. Binance vehemently denies these allegations and argues that the SEC failed to provide any concrete evidence to support their claims during court proceedings.
Remarkably, accusations of unethical conduct are being put forward by the former heads of the SEC's Division of Enforcement. The seriousness of these allegations coming from such esteemed legal professionals is sure to send shockwaves through the halls of the SEC, Murphy is convinced.
The legal expert anticipates that the SEC will respond to Binance's allegations with equal force, just as it has in the ongoing Ripple case.