Court Rejects Binance’s Claim of SEC Misconduct in Recent Ruling

In a recent development in the ongoing legal battle between crypto exchange Binance and the U.S. Securities and Exchange Commission (SEC), Judge Amy Berman Jackson denied Binance’s motion to prevent the SEC from making public statements regarding the case.

The decision came on Monday, June 26, following Binance’s allegations of misleading statements that could potentially impact the case and prejudice the jury pool.

Judge Jackson emphasized that it was not within the court’s purview to intervene in “wordsmithing” press releases from either party.

While she acknowledged the ethical obligations of all lawyers involved, the judge stated that court intervention at this stage was unnecessary and that the SEC’s public relations efforts were unlikely to significantly affect the proceedings of the case.

Binance’s motion stemmed from the SEC’s press release on June 21, in which the regulatory agency reiterated its claims of commingling user funds by Binance’s leadership.

This statement came after both parties had reached an agreement regarding the handling of assets held by Binance.US.

Binance responded by accusing the SEC of publishing misleading information about the mishandling of Binance.US customer funds by Binance and its CEO, Changpeng Zhao.

Experts in securities law have weighed in on the court’s decision, with some suggesting that Binance’s motion may have lacked substance and served more as a marketing strategy than a strong legal argument.

While the ruling may not directly impact the merits of Binance’s case, securities lawyer James “MetaLawMan” Murphy notes that it is not a favorable outcome for the exchange.

In addition to denying Binance’s motion, the court established a timeline for the early proceedings. Binance is scheduled to present its case on September 21, 2023, followed by the plaintiff’s legal arguments on November 7, 2023. Replies from both parties will be heard starting December 12.