Court did not intervene in SEC phrasing
U.S. District Judge Berman Jackson has dismissed Binance’s request that the U.S. Securities and Exchange Commission (SEC) denounce the SEC’s language in a lawsuit filed against Binance.
Judge Jackson explained the reason for the denial of the request as follows:
All attorneys in this case should always uphold their ethical obligations, but I do not believe that court intervention is necessary at this time to reaffirm that point.
Nor do we believe it necessary or appropriate for the court to intervene in the wording of the parties’ press releases. Moreover, it is not clear that the SEC’s public relations efforts to date will have a material impact on the proceedings.
As a background, Binance took issue with the SEC’s statement that Binance could misappropriate customer assets, which could adversely affect juries.
The language was written in a press release issued by the SEC when it and Binance agreed to avoid freezing Binance US assets.
In it, the SEC alleges that Changpong Zhao (CZ), CEO of Binance, and Binance Global were in a situation where they could control and freely divert customer assets of Binance US.
Binance countered that the SEC made these allegations without providing any evidence.
connection: SEC and Binance US agree to avoid asset freeze
“The SEC press release appears to be aimed at causing undue disruption to the market and may harm rather than protect Binance customers,” a lawyer for Binance said last week. was appealing to
It also alleges that it “provides a misleading description of the evidence of the defendant’s (Binance) actions and risks affecting the jury’s impression.”
The judge has now ruled that the court will not interfere with the wording of the SEC press release regarding these allegations.
Judge Jackson has set September 21 as the deadline for filing Binance’s written allegations in this case.
What is SEC
Established in 1934. Its purpose is to ensure fair trading and investor protection, and prevent insider trading, corporate fraudulent accounting, and market manipulation. It also determines whether virtual currency falls under the category of securities. SEC stands for “Securities and Exchange Commission”, and in Japan the “Securities and Exchanges Surveillance Commission” plays a similar role.
In its complaint against Binance, the SEC alleges that two CZ-controlled accounts, Merit Peak and Sigma Chain, were used to transfer tens of billions of dollars in US dollars, including to Binance and other related entities. was.
It also claims that Sigma Chain used these funds to purchase a yacht worth approximately ¥1.5 billion ($11 million).
To support these allegations, the SEC cited a 2022 audit and details of bank records obtained from Silvergate Bank and Signature Bank, which also served cryptocurrency companies.
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