After the SEC filed multiple charges against Binance earlier this month, Binance filed a motion with the court last week asking the SEC not to raise charges of commingling customer assets without evidence. However, the judge did not accept Binance’s argument and dismissed the motion today.
(Review of Multiple SEC Charges: SEC Charges Binance Holdings and Changpeng Zhao with Securities Law Violations, BNB Falls Below Recent Lows, CZ Responds 4)
SEC/Binance Newsflash: Binance Motion Alleging SEC Misconduct (Quickly) Denied
Last week, Binance filed a motion in the US SEC/Binance enforcement action asking that Judge Amy Berman Jackson prevent SEC attorneys from making public statements asserting that Binance and CZ have… pic.twitter.com/RFy5Qfo454
— John Reed Stark (@JohnReedStark) June 26, 2023
Binance files motion to object to SEC’s public statement on mixing user assets
John Reed Stark, former director of the SEC’s Office of Internet Enforcement, pointed out that Binance filed a motion in the SEC’s enforcement action against it last week, asking Judge Amy Berman Jackson to prevent the SEC’s lawyers from publishing Binance and its CEO CZ’s handling of U.S. user assets. Inappropriate public statements.
In the SEC's press release, its Director of Enforcement Gurbir Grewal said: "Changpeng Zhao and Binance control the assets of platform users and are able to mix and transfer user assets."
In response to this accusation, Binance stated that the SEC did not present any evidence of mixed assets, and said that the SEC’s public statements risked affecting the perception of the jury. Therefore, Binance believes that Judge Jackson should require the SEC to comply with the Washington, D.C. Rules of Professional Conduct and that attorneys cannot make misleading extrajudicial statements that may have a material impact on court proceedings.
Binance’s motion was swiftly dismissed
Three business days after Binance filed its motion, the judge dismissed the motion without receiving any response from the SEC. Judge Jackson said:
"While all attorneys in this case should always abide by their ethical obligations, it is unclear whether the court needs to intervene to reaffirm this, nor whether it is necessary or appropriate for the court to engage in the revision of the two parties' press releases. Likewise, it is not clear at this time It is unclear whether the agency’s public relations efforts to date have had a material impact on the proceedings in this case.”
Regarding Binance’s actions, Stark believes that the motion is boring and unworthy on its face, saying that it looks more like a marketing technique than a legal debate. At the same time, it is also believed that this motion may prompt criminal agencies to accelerate any actions taken against Binance.
This article Binance said that the SEC did not provide evidence of mixed use of customer assets, but the motion was rejected by the court. First appeared on Chain News ABMedia.
