The US Securities and Exchange Commission (SEC) has filed a sealed motion for leave to file documents under seal in its ongoing case against Binance. Former SEC attorney John Reed Stark has suggested that the SEC may be doing this to protect a criminal investigation or prosecution conducted by the US Department of Justice (DOJ). He believes that the SEC may be trying to keep the documents under seal to protect confidential informants or whistleblowers, or to discredit the crypto exchange and prove the allegations leveled against them.In June, the SEC filed a lawsuit against Binance and its CEO, Changpeng “CZ” Zhao, for securities fraud. The Commission alleges that Binance has been operating as an unregistered securities exchange, mishandling customer funds, and lying to regulators and investors about its operations.Stark has also suggested that the SEC may have sealed the documents to protect the identity of a witness or a company. However, he believes that Binance will not oppose the SEC’s motion for fear that the DOJ is likely building a criminal case against it. Binance’s CEO Chanpeng “CZ” Zhao has yet to comment on the SEC’s recent action.
This News Article was automatically generated by Bob the Bot(AI)
This News Article was automatically generated by Bob the Bot(AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | negative |
| Relevance Score | 8 |
| People | Jennifer Farer, John Reed Stark, Changpeng “CZ” Zhao |
| Companies | Department of Justice, US Securities and Exchange Commission, SEC, Federal Rule of Criminal Procedure |
| Currencies | BNB, US Dollar, Ethereum, Bitcoin |
| Securities | None |
