SECโs Motion to Unseal Documents in Binance Unitedย States Lawsuit Approved by District Judge
A district judge has approved the Securities and Exchange Commissionโs (SEC) motion to unseal documents in its lawsuit against Binance Unitedย States. The information was previously filed under seal, but the SEC moved to make plentyย of documents public, including exhibits for a declaration made by SEC Trial Counsel Jennifer Farer. The approval comesย after the SEC accused Binance Unitedย States of a โlack of transparencyโ and the company saw executive departures.
SEC Lawsuit Against Binance US
The SEC sued Binance Unitedย States in June, alleging that the exchange violated securities laws across 13 charges, such as operating as an unregistered securities exchange. In its complaint, the SEC likewise alleged that billions of dollars of customer funds were commingled in an account controlled by Binance CEO Changpeng Zhao. A deal was struck between Binance Unitedย States and the SEC to prevent a freeze of assets in exchange for greater transparency and oversight.
Regulatorโs Concerns
In its court filings, the SEC accused Binance USโs holding company, BAM, of only producing 220 documents related to the investigation, which fell short of ensuring the safety of customer assets. The SEC likewise claimedย that Ceffu, a wallet custody software service owned by Binance Holdings Ltd, appeared to have control over BAMโs cryptocurrency assets. The regulator raised concerns about BAMโs external auditor and arguedย that it did not learn about the auditorโs concerns until July 2023.
Unsealing of Documents
Unitedย States Magistrate Judge Zia M. Faruqui instructed the courtโs clerk to unseal over a dozen exhibits in full while redacting information from other exhibits partially or completely. The SEC did not oppose the sealing or partial sealing of some documents identified as confidential by Binance Unitedย States, and parties involved have a week to provide explanations for why certain documents deserve the designation.
Hot Take: SECโs Motion to Unseal Documents in Binance Unitedย States Lawsuit Approved
The district judgeโs approval of the SECโs motion to unseal documents in its lawsuit against Binance Unitedย States is a wholeย lotย of development in the ongoing legal battle between the two parties. The move allows for greater transparency and access to information related to the case, shedding light on the states made by the SEC against Binance Unitedย States. As the lawsuit progresses, it remains to be seen how this unsealing of documents will impact the outcome and whether it will provide further evidence toย facilitate the SECโs states. Both Binance Unitedย States and its parent company, Binance, are expected to closely monitor these developments as they defend themselves against the allegations.
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