Court rejects BinanceUSs motion in the Binance vs SEC lawsuit

The court judge stated that the current situation is not showing whether SEC’s public statements about Binance will materially affect proceedings in this case or not. 

Binance is an international crypto trade platform. In the US Binance provides digital assets trade services via its independent subsidiary BinanceUS but in the first week of this month, the United States Securities Exchange Commission (SEC) sued Binance, BinanceUS, & Binance CEO Changpeng Zhao (CZ) over alleged unregistered crypto securities offerings & mishandling of customers funds.

Following the SEC’s lawsuit against Binance, BinanceUS & SEC reached a mutual agreement that the SEC agency will not freeze any assets or funds linked with BinanceUS, before the outcome of this suit. 

Later BinanceUS team filed a motion in the court and alleged that the SEC body passed several misleading statements against BinanceUS that may impact the case. In this way, BinanceUS team tried to prohibit the SEC agency from passing any negative statement against the exchange during the lawsuit fight. 

In the lastest, the Court judge rejected BinanceUS’s motion and said that the court can’t “wordsmith” either party’s public statements against the other. 

The court judge stated:

“it is not apparent that Court intervention to reiterate that point is needed at this time, or that it is necessary or appropriate for the Court to get involved in wordsmithing the parties’ press releases. Nor is it clear that the agency’s public relations efforts to date will materially affect proceedings in this case.”

A former SEC official also shared his opinion on BinanceUS’s motion against the SEC and indirectly said that it was a useless effort.

SEC/Binance Newsflash: Binance Motion Alleging SEC Misconduct (Quickly) Denied

Last week, Binance filed a motion in the US SEC/Binance enforcement action asking that Judge Amy Berman Jackson prevent SEC attorneys from making public statements asserting that Binance and CZ have… pic.twitter.com/RFy5Qfo454

— John Reed Stark (@JohnReedStark) June 26, 2023

A Securities lawyer also shared his opinion on this latest court ruling and said that it is clear that the latest court ruling against BinanceUS’s motion will not give any merit to the SEC against BinanceUS. 

He also noted that the court judge doesn’t want to interfere in the public statements of these two parties. In short, the proceeding expectedly will be faster.

Judge Jackson has issued a brief order denying the @Binance motion before the SEC filed its response.
The judge wrote that it was not necessary to reiterate both side's obligations to comply with ethics rules, and she will not get involved in "wordsmithing the parties' press…

— MetaLawMan (@MetaLawMan) June 26, 2023

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