Former SEC Official Predicts Rare Twist in Binance v. SEC Lawsuit
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
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.
Alex DovbnyaTwist 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).
What’s Up With The Secret U.S. SEC Motion Relating to Binance?
— John Reed Stark (@JohnReedStark) August 29, 2023
In the U.S. SEC/Binance litigation, the U.S. SEC has filed a sealed motion for leave to file documents under seal, according to an SEC court filing late yesterday. Filing a court document “under seal” allows… pic.twitter.com/cmx6gdh2so
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.
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.
Related articles
Alex Dovbnya
Vladislav Sopov
Dan Burgin