August 28, SEC (SEC) submit A sealed motion to allow sealed documents to be filed in the ongoing case against Binance.After this, the former SEC attorney john reed stark What this means for the world’s largest cryptocurrency exchange by volume is revealed.
Criminal case against Binance on the horizon?
in a tweet Stark posted on his X (formerly Twitter) platform that the SEC may choose to seal the documents because they do not want to interfere or disclose “criminal investigations or prosecutions” conducted by the US Ministry of Justice (Department of Justice).
He noted that there may be reasons to keep it secret, especially if the Justice Department has already convened a grand jury for the impending crime, since the information is considered “secret” by the Justice Department. Federal Rules of Criminal Procedure.
Regarding the investigation, the SEC may also seek to seal the documents, especially if the Justice Department is working with a confidential informant or whistleblower whose information must be kept private so as not to jeopardize the investigation.
Sealing the archive ensures that the document will not be released to the public. However, given that court documents are supposed to be made available to the public, court approval is required. That’s why the committee filed a motion seeking leave from the court to file these documents.
The SEC filed multiple pieces of evidence, a proposed order, a statement from SEC trial attorney Jennifer Farer, and motions. Stark believes that the SEC’s sealed filing “may involve” “non-public money laundering allegations or other potential criminal conduct related to Binance.”
If so, the SEC may do so to discredit cryptocurrency exchanges and demonstrate their ability to deal with the charges the regulator has brought against them.
In June, the U.S. Securities and Exchange Commission (SEC) filed a litigation Sued Binance and its CEO Changpeng Zhao “CZ” for securities fraud. The commission alleges that Binance has been operating as an unregistered stock exchange. Binance has also been accused of mishandling customer funds and lying to regulators and investors about its operations.
BNB buckles under regulatory pressure | Source: BNBUSD on Tradingview.com
Another plausible option
Stark further suggested that the SEC may have sealed the documents simply to protect the identity of its witnesses or the company. However, in this case, what is usually done is to edit some statements, rather than block the whole field.
He noted that if Binance objects to the SEC’s motion, it likely means the SEC is simply trying to keep “witness identities confidential,” which Binance would prefer to reveal.
However, he doesn’t expect the cryptocurrency exchange to oppose the SEC’s motion due to concerns that the U.S. Department of Justice may bring criminal charges against it. Binance does not want to make any statement that could serve as evidence or criticize criminal charges related to the company’s operations.
Binance’s CEO Chanpeng “CZ” Zhao, known for issuing statements refuting any statementThere has been no comment on the SEC’s recent actions.
Featured image via Cryptopolitan, chart via Tradingview.com
