Former SEC Official Gives Insight on Binance vs. US SEC Lawsuit
In a recent discussion, former US SEC enforcement chief John Reed Stark shared his thoughts on the ongoing lawsuit between Binance and the US Securities and Exchange Commission (SEC). Stark believes that the SEC has a stronger case against Binance due to the exchange’s alleged non-cooperation.
Magistrate Judge Faruqui has ordered the SEC to explain why sealed or redacted documents related to the motion to compel, which seeks depositions from Binance.US CEO and CFO, should be maintained.
Key Points from John Reed Stark
Stark stated that the SEC’s arguments regarding depositions from Binance.US executives, as well as information related to Binance.US’s crypto custodian Ceffu (formerly Binance Custody), are sufficient for the SEC to gain control in the case. He emphasized that Monday’s hearing is crucial for both parties.
The Magistrate Judge will hear arguments from the SEC regarding Binance’s alleged non-cooperation and will question Binance.US about the protective order and lack of cooperation.
“You could refer that to the criminal authorities and say, look, Binance is lying to us in their depositions…then you get to this kind of process-related crime.”
Stark also mentioned that he expects the Binance lawsuit to conclude sooner than Coinbase’s case because fraud allegations are involved. He believes that the SEC will challenge Binance’s actions of withholding information, especially considering that their auditor has revealed additional details.
Binance Challenges SEC’s Discovery Requests
Binance.US has filed a motion for a Protective Order to prevent the SEC from accessing certain business files and content. The exchange argues that the SEC’s request for more information goes against the consent order previously agreed upon.
The decision on the protective order and motion to compel, which aims to reveal more documents and depositions from Binance executives, is still pending. Despite this, Binance continues to fight against the SEC’s attempt to gain jurisdiction over the crypto industry.
Hot Take: The Drama Unfolds in the Binance vs. SEC Lawsuit
The ongoing legal battle between Binance and the SEC is reaching a critical point. Former SEC enforcement chief John Reed Stark believes that the SEC has a better chance of success due to Binance’s alleged non-cooperation. The upcoming hearing will play a crucial role in determining the outcome of the case.
Binance’s refusal to comply with the SEC’s requests has further complicated matters, with potential consequences that could extend beyond civil penalties. As fraud allegations emerge, it is clear that this lawsuit will have significant implications for both Binance and the broader crypto industry.
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