Former SEC Official The US Department of Justice is expected to soon announce or file a lawsuit related to Binance.
Former SEC Official US DOJ to Announce Binance Lawsuit Soon.
Author: Mike Dalton, CryptoSlate; Translation: Song Xue, LianGuai
A former official stated that the parent company of Binance.US requested a protective order on August 14th to prevent the Securities and Exchange Commission (SEC) from making excessive demands, which may not be reliable.
BAM complained in the initial filed documents that the SEC required a large number of employees to provide excessive information and testimonies.
Therefore, BAM seeks a protective order from the court. The requested protective order would allow the SEC to dismiss only four employees of BAM (excluding its CEO and CFO), while preventing regulatory agencies from conducting overly broad investigations. These matters are all related to an ongoing case initiated by the SEC against Binance in June.
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The court has not yet dealt with Binance.US’s request. However, on August 16th, John Reed Stark, former head of the SEC’s Internet Enforcement Office, commented on the matter and predicted the most likely outcome.
Stark stated that the SEC may be requesting too much information, and BAM’s requested information in its protective order is also excessive. He suggested that the parties involved in the case need to reach a compromise on this matter.
Stark added that the SEC has previously obtained consent or temporary restraining orders against Binance.US. This can expedite the development of the situation, which means that the court must resolve the dispute faster than usual.
Stark also predicted that Judge Amy Berman Jackson would refer this matter to a magistrate judge, which happened later that day. Judge Jackson transferred Binance.US’s motion to Magistrate Judge Zia M. Faruqui in a court document.
Finally, Stark pointed out that he believes the US Department of Justice (DOJ) will soon unseal or file indictments related to Binance, further complicating the SEC’s case. At least as early as the report on August 2nd, it was indicated that the DOJ is about to bring these charges.