The SEC’s decision to unveil sealed documents in the lawsuit against Binance and its CEO, “CZ,” sparks curiosity about their contents. This comes as top executives leave both Binance and Binance.US, impacting investor confidence and trading activity across exchanges. Binance’s current trading levels are also lower than last year.
What is SEC & Binance hiding in these sealed documents that warrant legal confidentiality? The legal showdown has begun!
SEC’s Agrees to Open Sealed Documents, One of a Rare Incident
In the most unexpected manner, Attorneys representing the SEC submitted a motion on September 15, seeking to unseal or withdraw the earlier request to seal documents related to the Binance lawsuit. Both the SEC and the defendants, Binance and Binance.US, have mutually agreed to reveal many documents filed by the SEC last month. These documents pertain to the “Motion to Compel and For Other Relief” and “Opposition to Binance.US’ Motion for a Protective Order.”
However, the SEC does not contest the sealing or partial sealing of certain documents marked as confidential by defendants BAM Trading Services Inc. and BAM Management US Holdings Inc., collectively known as “BAM,” should they continue to request confidentiality.
Is SEC Confidential Documents Strategy to Shut Binance Without FUD?
The market is already fearing what comes next for the ill-fated crypto giant. The SEC has raised concerns about the delay caused by Binance.US in filing sealed documents, despite submitting redacted versions. This delay is significant due to the case’s importance.
What SEC Upto?
Some documents have been recommended for public disclosure, while others remain under dispute. Experts speculate on why Binance & SEC agreed to reveal some of these sealed documents. One theory suggests they could pertain to witness testimony, potentially benefiting Binance’s case or may go against it as SEC claimed many testimonials are false. Another theory posits that these documents might contain statements or evidence strengthening Binance’s position or weakening the SEC’s allegations. This sealed theory is heating up the legal forum as John Reed Stark has also said that in his 20 years of Legal Career, he has not seen any sealed documents. As public has all the right to know about the case proceedings.
All Eyes are on September 18 Judgement Now
A hearing on Binance vs. SEC is scheduled for September 18, where Magistrate Judge Faruqui will hear arguments from both sides regarding protective orders and motions to file documents under seal. This development comes amid executive departures and heightened regulatory scrutiny on both Binance and Binance.US.