Crypto Exchange Binance in the Dark as SEC Files Sealed Motion

Binance, the world’s largest crypto exchange by trading volume, may be facing more legal challenges from U.S. regulators as the Securities and Exchange Commission (SEC) filed a sealed motion in its ongoing lawsuit against the company.

The SEC sued Binance in June for allegedly offering unregistered securities to U.S. investors in the form of its native BNB token and its Binance USD (BUSD) stablecoin. The SEC claims that Binance violated federal securities laws and misled investors about the nature and risks of its products.

SEC Continues to Put Pressure on Binance

On Monday, the SEC submitted a sealed motion in the court docket, which means that the contents of the motion are not publicly available. The motion included more than 35 exhibits, a declaration from an SEC trial attorney, and a proposed order.

According to John Reed Stark, a former SEC official, and a consultant, filing court documents under seal is a “rare move” that indicates that the SEC may have some sensitive or confidential information that it does not want to disclose. 

What’s Up With The Secret U.S. SEC Motion Relating to Binance?

In the U.S. SEC/Binance litigation, the U.S. SEC has filed a sealed motion for leave to file documents under seal, according to an SEC court filing late yesterday. Filing a court document “under seal” allows… pic.twitter.com/cmx6gdh2so

— John Reed Stark (@JohnReedStark) August 29, 2023

Stark speculated that the SEC may be trying to avoid interfering with a criminal investigation by the U.S. Department of Justice, or that the SEC may be worried about putting a witness or company at risk. 

The crypto exchange has been facing increased scrutiny from regulators around the world, including in the U.K., Japan, Canada, and Singapore. Binance has said that it is committed to complying with local laws and regulations and that it is working with authorities to resolve any issues.

The sealed motion by the SEC has sparked speculation and curiosity among the crypto industry observers, who are wondering whether more bad news is about to hit Binance. If the SEC’s allegations are proven true, Binance could face significant fines, penalties, and restrictions on its operations in the U.S. market.

The reason for this filing is not yet known, but it could potentially lead to a complex legal battle between the two parties.