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Former SEC Official Predicts Rare Twist in Binance v. SEC Lawsuit

Tue, 08/29/2023 - 16:15
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Godfrey Benjamin
Binance v. SEC lawsuit might have more intrigue to come, according to ex-official
Former SEC Official Predicts Rare Twist in Binance v. SEC Lawsuit
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It has been weeks since the United States Securities and Exchange Commission (SEC) filed its lawsuit against renowned crypto trading platform Binance exchange, and with the case progressing forward, former official of the commission John Reed Stark has shared a number of new insights into the probable twists that can be expected as the lawsuit unfolds.

Binance US Stumbles Amid Regulatory Scrutiny

Twist in sealed motion

One of the biggest intrigues recorded is the request to seal up some documents in a secret motion that has gotten a number of experts wondering why the regulator would make such a rare move.

To Stark, one of the few strategic reasons why the SEC may request to seal its evidence and findings is because of any probable criminal investigation that might have been levied against Binance exchange by agencies like the Department of Justice (DoJ).

Per earlier reports, the DoJ has been investigating Binance exchange for some criminal operational matters, and irrespective of the strong case from the SEC, the evidence has to be under seal in order not to jeopardize other enforcement actions.

Stark also believes the SEC might have made a request for motion sealing if it perceives that failure to do so could put a witness at risk. As the former SEC boss noted, the case is hard to decipher, but Binance may not oppose the move to seal some documents in order to prevent any form of chaos that may trail any damning discovery into its operations.

BREAKING: Binance Under Investigation by DOJ and IRS

Chances of success

Unlike the case the U.S. SEC has against Coinbase Global Inc., the lawsuit filed against Binance has been deemed to be a crucial signal that the largest trading platform may need to navigate more cautiously. While market experts have placed the odds of Coinbase winning its many suits high, that of Binance is otherwise relatively lower as skepticism has been the position with respect to the latter exchange.

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About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.