SEC’s ‘Secret’ Filing in Binance Case Could Relate to Criminal Investigation, Says Former SEC Official

The U.S. Securities and Exchange Commission’s erstwhile caput of Internet enforcement suspects that the SEC’s “secret” filing successful the Binance lawsuit is simply a “rare” maneuver that could subordinate to the Department of Justice’s transgression probe against the crypto exchange. He stressed that the securities regulator’s “seal-seeking filing is unusual, odd, and uncommon,” emphasizing that the determination “cannot beryllium overstated.”

SEC Takes ‘Rare’ Move successful Binance Case

Former U.S. Securities and Exchange Commission (SEC) authoritative John Reed Stark shared his position Tuesday regarding what helium called a “secret” SEC filing successful its litigation against cryptocurrency speech Binance successful a lengthy station connected societal media level X. Stark is presently president of cybersecurity steadfast John Reed Stark Consulting. He founded and served arsenic main of the SEC Office of Internet Enforcement for 11 years. He was besides an SEC enforcement lawyer for 15 years.

The erstwhile SEC authoritative explained that the securities watchdog filed “a sealed question for permission to record documents nether seal” successful the Binance lawsuit precocious Monday, noting that a tribunal papers nether seal “allows delicate oregon confidential accusation to beryllium filed with a tribunal but kept disconnected of immoderate nationalist record.” The regulator filed 13 charges against Binance entities and CEO Changpeng Zhao (CZ) successful June.

Stark opined:

Filing immoderate tribunal papers nether seal is simply a uncommon determination by the SEC. The SEC is simply a civilian (not a criminal) enforcement agency; thus, successful stark opposition to transgression prosecutorial filings, SEC motions (and enforcement actions) are typically filed openly and escaped for everyone to read.

He believes the crushed for this “rare SEC tactic” is due to the fact that the filing contains delicate accusation relating to an existing U.S. Department of Justice (DOJ) probe of Binance, which could see the individuality of a witness. Stark noted that successful his opinion, “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.”

The erstwhile SEC Internet enforcement main pointed retired that Binance could reason the SEC seal request. Nonetheless, helium stressed that the SEC’s enactment “cannot beryllium overstated,” emphasizing:

Under immoderate circumstance, this SEC seal-seeking filing is unusual, odd, and uncommon.

“In my astir 20 years successful the SEC Enforcement Division, including 11 years arsenic main of the SEC’s Office of Internet Enforcement, our squad worked connected and led a wide scope of SEC investigations which progressive parallel U.S. DOJ investigations and tons of litigation — and I can’t callback ever seeking to record a question oregon immoderate different tribunal papers nether seal,” helium shared.

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