In a recent development, a federal judge rejected Binance.US motion to limit the wording used in press releases by the Securities and Exchange Commission (SEC). Binance is the largest cryptocurrency exchange in the world. Binance.US complained about “misleading” public statements from regulators regarding consumer asset handling. The judge, however, refused to limit the SEC’s communication capabilities.
Judge Amy Berman Jackson of the District Court dismissed the claims, reiterating that it is not the court’s function to “wordsmith” statements from either side in the SEC’s complaint against Binance.US. Judge Jackson stated that the SEC’s public relations activities were unlikely to significantly affect the case. She deemed judicial action unnecessary at this point.
Attorneys for BAM Trading, operating as Binance.US, filed a complaint expressing concerns about the SEC’s alleged “misleading extrajudicial statements” in a news release. Binance’s legal team argued that the SEC’s public release could cause confusion and harm customers. They also raised concerns about misleading statements impacting jurors’ perceptions of the facts.
The legal team at Binance insisted that there was no proof of misuse, commingling, or dissipation of customer money. The judge set a deadline of September 21 for Binance.US to respond to the SEC’s charges. The SEC, in turn, has until November 7 to reply to Binance.US’s response.
Binance.US is preparing for a legal war with the SEC by the court complaint. On June 5, the SEC initiated a lawsuit against Binance.US and CEO Changpeng “CZ” Zhao. The lawsuit alleges violations of federal securities laws. As the case progresses, both parties are expected to present their arguments and supporting evidence in court.