The crypto giant is on the SEC‘s radar and the exchange is being accused of numerous irregularities. A new court decision has emerged. BinanceUS made a significant gain in the matter of freezing its assets. Despite continuing operations, investors’ interest has declined due to strict surveillance and the risk of a lawsuit. Decreasing liquidity is making matters difficult for the remaining users.
Latest on Binance Case
A new attack has begun on the BinanceUS front. Lawyers criticizing the SEC’s language in press releases had requested that this be banned by the court. A federal judge denied the exchange’s request to limit the language the SEC uses in its press releases regarding the management of customer funds, arguing it could harm the company in court.
Amy Berman Jackson, the DC District Court judge presiding over the SEC’s lawsuit against BinanceUS, rejected claims, arguing that it’s not the court’s role to “dictate words” to any party’s public statements.
At this time, it is not clear whether the court needs to intervene or whether it is necessary or appropriate for the court to get into the phrases of the parties’ press releases. It’s also unclear whether the agency’s public relations efforts to date will significantly affect the proceedings in this case.
Binance Continues to Fight
Lawyers for BAM Trading filed a complaint about the SEC‘s press release on Friday, expressing their concerns about the SEC’s “misleading ex-judicial statements”. Binance’s lawyers stated, “The SEC’s press release appears to be designed to bring unnecessary confusion to the market, rather than protecting BAM customers, it will harm them.”
The company’s lawyers also argued that “there is no evidence that BAM customer assets have been distributed, mixed, or abused in any way.”
The judge gave Binance until September 21 to respond to the SEC’s claims. The SEC’s response to the company’s defense will end on November 7. Although the SEC started a strong case with serious allegations, it weakened its hand by failing to provide tangible evidence on the mixing or risk of external transfer of customer assets.
We are still at the very beginning of the case and Binance exchange’s job is tough. The biggest wish of crypto investors for more profit is that the SEC makes more mistakes and humiliates itself. A decision or sanction threatening the Binance Global exchange would have an extremely negative effect on the cryptocurrency markets.
