Will Binance Oppose the SEC’s Motion to Seal? Former SEC Official Calls the Motion ‘Unusual and Odd’

The post Will Binance Oppose the SEC’s Motion to Seal? Former SEC Official Calls the Motion ‘Unusual and Odd’ appeared first on Coinpedia Fintech News

The unfolding events add an element of suspense to the ongoing legal battle between the U.S. Securities and Exchange Commission and Binance, with the sealed motion raising questions about the nature of the information and the potential impact it may have on the case.

John Reed Stark, former SEC official, has drawn attention to an unusual move by the SEC in its ongoing litigation against Binance.  Along with the motion, the SEC also filed 37 supportive submissions including multiple exhibits. 

Typically, he said that the SEC motions and enforcement actions are filed openly, and accessible to the public. The SEC’s transparency is crucial to keeping taxpayers informed about its actions and encouraging compliance with securities regulations. However, when certain scenarios arise, the SEC may opt to file documents under seal, restricting public access.

Stark outlines two reasons for the SEC’s sealed motion:

If the filing could disrupt a criminal investigation led by the U.S. Department of Justice (DOJ), the SEC might choose to seal the document. For instance, if the DOJ is looking into Binance for potential money laundering or other criminal activities, the SEC could be mindful of not jeopardizing these proceedings.

Sometimes, sensitive information that could endanger witnesses or companies needs to be kept confidential. In these cases, redactions or partial sealing may be employed.

In other words, Stark suggests that the private SEC filing might be connected to an existing investigation by the U.S. Department of Justice (DOJ) regarding Binance. This document could reveal information about a forthcoming DOJ indictment involving Binance that hasn’t been disclosed yet. 

He said, “And my guess is that Binance will likely NOT oppose the U.S. SEC sealing motion for fear of making public potentially inculpatory evidence or potentially scathing criminal allegations relating to Binance’s activities.”