By attacking Binance, do the SEC, the CFTC and the American justice system think regularize once and for all the situation of the first cryptocurrency exchange in the world ? Or will they go so far as to slaughter him like game? Based on the recent words of John Reed Starda former SEC employee, the crypto giant should expect theopening of a criminal investigation in the coming days. The Securities and Exchange Commission’s request for permission to file documents under seal doesn’t actually bode well.
In short :
- The SEC has just filed a request for authorization to file documents under seal in connection with the Binance affair ;
- The American regulator only makes this kind of request very rarely.
The SEC’s Intriguing Act
For judge Amy Berman Jackson, Binance and the SEC will have to find common ground instead of tearing each other apart. It even refused Binance US’ request to freeze assets in mid-June. This is with the aim of promoting the “negotiation” alternative in this matter.
But the SEC won’t let go so easily. With this liquidation story, Binance will not escape new proceedings against it. Former SEC employee and pro-crypto lawyer John Reed Stark recently called for a “strict audit” to reassure the crypto community.
” In connection with the dispute between the SEC and Binance, the SEC has filed a request for authorization to file documents under seals, according to a court filing by the SEC late yesterday. The filing of a judicial document “under seal” makes it possible to file sensitive or confidential information with a courtbut not to make them public.
The SEC also filed 37 documents in support of his requestincluding numerous exhibits, a proposed order, and a statement from SEC attorney Jennifer Farer. »
Translation of the first two paragraphs of John Reed Stark’s publication.
This tweet from John Stark highlights an approach rarely chosen by the SEC. ” This SEC Sealing Request Is Unusual, Weird, and Uncommon », Specifies the crypto lawyer.
” In my 20 years in the SEC’s Enforcement Division, including 11 years as Chief of the SEC’s Office of Internet Enforcement, our team worked on and led a wide range of SEC investigations that involved parallel US Department of Justice investigations and extensive litigation – and I don’t recall ever seeking to file a petition or any other documents judicial under seal », he is surprised.
An organized attack against the “criminal” Binance?
Crypto Newswho had also looked at this tweet from John Reed Stark, mentioned that this legal action would certainly have links with the hasty departure from Russia decided by Binance. The DOJ, although peaceful in the face of charges against the cryptocurrency giant, would have disconcerting files in its hands.
For John Reed Stark, Gary Gensler’s team could use it against Binance, the issuer of BNB. Reason why she requested authorization to deposit documents under seal.
” In other words, I think the secret SEC file is likely related to an existing DOJ investigation into Binance and may, directly or indirectly, describe previously unknown contents of an impending DOJ indictment on Binance or an indictment already filed under seal – which the DOJ would prefer to keep secret “, speculates John R. Stark.
As a retort, Binance has a choice whether to object or not.
” I think Binance probably won’t object to the SEC’s request for a seal for fear of releasing potentially incriminating evidence or potentially scathing criminal allegations regarding Binance’s activities. », argues pro-crypto lawyer John Stark.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
