In a development that has concerned some, the US Securities and Exchange Commission (SEC) has filed a sealed motion against Binance. Indeed, the regulator filed the secretive motion late Monday, with over 35 exhibits.
There are no hints as to what the secret filing could entail, but many are preparing for the worst. The cryptocurrency exchange is already facing a host of charges in the United States, with many wondering if more could be on the horizon.
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Binance Facing Secretive New Motion Filed by SEC
The largest cryptocurrency exchange in the world has had a rather tough time in the United States over the past several months. As regulatory standards continue to be developed, Binance has found itself on the receiving end of legal action. Now, some have expected that to get even worse in the coming days.
Specifically, the SEC filed a sealed motion on Monday against Binance, featuring more than 35 exhibits. Moreover, the sealed status of the motion allows confidential information to be entered in the case. Subsequently, that information will remain hidden from the public.
The motion features a declaration from SEC trial attorney Jennifer Farer as well as a proposed order. Moreover, former SEC official John Reed Stark has discussed the “rare move” of sealing a motion. Stating that it’s in the “public interest” to keep these developments public.
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Subsequently, Stark offered two different theories as to what this could mean. First, he opined that the SEC could be seeking to avoid interference with an ongoing US Department of Justice investigation. Alternatively, he said the SEC could be worried about putting either a company or an individual witness at risk.
The SEC had previously sued Binance for violations of securities laws through the sale of unregistered securities. Moreover, the company has faced compliance questions over the last several months from different regulatory agencies.