SEC’s sealed motion against Binance could be related to DOJ charges: Former SEC official

The U.S. Securities Exchange Commission (SEC) submitted a sealed and perchance high-impact tribunal filing successful its lawsuit against Binance connected Aug. 29.

The filing successful question represents the SEC’s sealed question to permission to record a papers nether seal. It besides includes 36 attachments, including statements from SEC lawyers Jennifer Farer and Matthew Scarlato.

Though the quality of the question and the documents that the SEC plans to taxable are expressly being kept backstage and are not disposable to the public, immoderate experts judge the filings are related to pending transgression charges against Binance.

John Reed Stark, who formerly served arsenic the Chief of the SEC’s Office of Internet Enforcement, wrote connected X (formerly Twitter):

 “In my sentiment … the U.S. SEC’s concealed and bonzer tribunal filing, which appears to beryllium highly comprehensive, apt touches upon nonpublic Binance-related wealth laundering allegations oregon different imaginable transgression conduct.”

Specifically, Stark suggested that the SEC plans to record tribunal documents nether seal due to the fact that those filings could interfere with oregon uncover details astir an ongoing prosecution underway astatine the U.S. Department of Justice (DOJ). Reports arsenic caller arsenic Aug. 7 suggest that the DOJ is considering fraud charges against Binance.

Stark said that immoderate nationalist filing from the SEC could interfere with concealed expansive assemblage proceedings, undercover operations, oregon interactions with witnesses and whistleblowers if immoderate of those activities are presently underway connected the portion of the DOJ.

Stark besides speculated that the SEC mightiness record documents nether seal if those filings enactment a witnesser oregon institution astatine risk. However, helium noted that this usually results successful partial redaction alternatively than afloat sealed documents, making this mentation little likely.

Binance’s actions could constituent to filing contents

Stark besides noted that whether Binance chooses to reason the sealing question could constituent to the quality of the filings. If Binance does not reason the filing — which Stark says is apt — the documents astir apt incorporate incriminating accusation that Binance does not privation to beryllium revealed. However, if Binance does reason the filing, the filing apt involves grounds from witnesses that Binance would similar to place publicly.

Stark concluded that the SEC’s determination to record extensively sealed documents is rare. He said the SEC did not bash truthful during his 20 years astatine the agency.

The station SEC’s sealed question against Binance could beryllium related to DOJ charges: Former SEC official appeared archetypal connected CryptoSlate.