A motion to prevent the United States Securities and Exchange Commission (SEC) from making public statements regarding the ongoing lawsuit between Binance.US, Binance Holdings Limited, CEO Changpeng “CZ” Zhao, and the SEC has been denied by a federal judge.
The ruling, made on June 26 by Judge Amy Berman Jackson in the U.S. District Court for the District of Columbia, concluded that court intervention was unnecessary at this time.
The motion was filed on June 21 by the legal team representing Binance and Binance.US, alleging that the SEC’s statements about the securities lawsuit were misleading and could potentially bias the jury and cause confusion in the market.
However, Judge Jackson stated that it was not clear if the SEC’s public relations efforts would have a significant impact on the case and that the court did not need to be involved in regulating the parties’ press releases.
The SEC’s statements that sparked the complaint were made in a press release on June 17 by Gurbir Grewal, the Enforcement Director.
Grewal claimed that CZ and Binance had the ability to misuse or divert customer assets. The legal teams representing Binance and Binance.US argued that these allegations were misleading and largely denied them.
The lawsuit against Binance, Binance.US, and CZ was filed by the SEC on June 5.
The SEC accused the exchanges of offering unregistered securities to U.S. customers, and Binance was also accused of failing to register as an exchange or broker-dealer clearing agency.
Initially, the SEC sought to freeze all Binance.US assets, but a compromise was reached, allowing only the exchange’s employees access to client funds.
While facing legal proceedings in the U.S., Binance has continued its global operations.
On June 20, the company announced the launch of a regulated cryptocurrency platform in Kazakhstan.
However, on June 23, the Belgian Financial Services and Markets Authority ordered Binance to cease offering crypto exchange and custody wallet services.
Additionally, Binance reportedly withdrew its application with Austria’s financial regulatory authority.
As the legal battle between Binance and the SEC continues, the denial of the motion suggests that the court does not deem it necessary to intervene in the SEC’s public statements at this stage.
The lawsuit and regulatory actions from various countries underscore the challenges and scrutiny faced by Binance in maintaining its global operations.
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