The SEC is set to release confidential documents in its case against Binance US, raising regulatory questions amid the ongoing battle and potential DOJ investigation into the cryptocurrency exchange.
- The SEC plans to release confidential documents related to its case against Binance US with consent, adding to crypto regulation scrutiny.
- Judge Zia Faruqui grants the SEC’s motion to unseal documents, including a “Motion to Compel” and an “Opposition to Binance US’ Protective Order.”
- Binance US and third parties can argue against unsealing 18 sealed and nine partially redacted documents within seven days, followed by the SEC’s response.
- The move raises questions about a potential DOJ investigation into Binance, highlighting the evolving regulatory landscape for cryptocurrencies in the United States.
In a major development, the United States Securities and Exchange Commission (SEC) is preparing to make public certain confidential documents pertaining to its ongoing case against Binance US. This release comes at the request of the SEC and with the consent of both parties involved in the case, adding another layer to the SEC’s scrutiny of crypto regulation and its actions against Binance.
Late night filing by SEC in Binance case mostly redacted and sealed but it looks like SEC fired back tons of evidence and testimony against some claim Binance has made. It’s a bit of a land slide compared to what we’ve seen so far.
Wonder if any correlation to weird Chinese OTC… pic.twitter.com/rq5oeXycdE
— Adam Cochran (adamscochran.eth) (@adamscochran) September 15, 2023
Binance US and the SEC Agree to Unseal Documents
The legal battle between the SEC and Binance US has reached a turning point as District of Columbia District Court Magistrate Judge Zia Faruqui has granted the SEC’s motion to unseal specific documents. These documents include a “Motion to Compel and For Other Relief” and an “Opposition to Binance US’ Motion for a Protective Order.”
Both the SEC and Binance US have agreed to the unsealing of several documents that were submitted by the SEC last month. The next hearing for this case, presided over by Magistrate Judge Faruqui, is scheduled for September 18.
Judge Faruqui’s order lists 18 sealed documents and nine partially sealed or redacted documents. Binance US and any third parties claiming confidentiality on these documents will have seven days to argue against the unsealing. The SEC will then have an additional seven days to respond to these claims.
The specified documents, which were filed on August 28, have sparked discussions about a potential U.S. Department of Justice investigation of Binance. These partially sealed documents consist of 117 pages, including internal communications within Binance US, emails, and SEC court filings.
Unanswered Questions and Ongoing Litigation
Not all sealed documents in the case against Binance US are included in the unsealing order. For example, a proposed order filed by BAM, the holding company of Binance US, on September 11, was not mentioned in the order. The proposed order, along with the SEC’s opposing document and eight other exhibits, remain sealed.
The initial SEC case against Binance US, the broader Binance entity, and CEO Changpeng Zhao was filed in June. The allegations revolve around operating unregistered securities and other questionable practices, including wash sales. In August, Binance US requested a protective order against the SEC.
This move by the SEC to unseal documents not only sheds light on its case against Binance US but also raises broader questions about the regulatory stance on crypto regulation. It is an ongoing area of focus for authorities, as they strive to strike a balance between embracing cryptocurrency and ensuring market integrity.
To Sum it All Up….
The actions taken by the SEC against Binance may play a significant role in shaping the regulation of crypto assets in the United States, serving as a precedent for how crypto entities navigate the complex landscape of U.S. regulations.
As both sides gear up for the next phase of the legal battle, the crypto community eagerly awaits further developments. While this release of documents may not provide all the answers, it does offer a clearer view of the SEC’s case against Binance US.
