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SEC Files Sealed Motion In Binance Case: Unveiling A ‘Rare’ Legal Maneuver

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In a surprising turn of events, the United States Securities and Exchange Commission (SEC) has filed a sealed motion in its ongoing litigation against Binance, the world’s largest cryptocurrency exchange.

This rare legal maneuver, which aims to file documents under seal, has drawn attention and speculation within the legal and cryptocurrency communities. Former SEC official John Reed Stark has provided insights into this “unprecedented” development, shedding light on potential reasons behind the SEC’s decision.

Intrigue Surrounds Sealed Motion In Binance Lawsuit

The filing, submitted on August 28th, includes a motion and 37 accompanying submissions, such as exhibits, a proposed order, and a declaration by SEC trial attorney Jennifer Farer.

Usually, the SEC’s motions and enforcement actions are filed openly and made accessible to the public. However, filing documents under seal is a highly unusual tactic the SEC employs, typically reserved for exceptional circumstances.

According to Stark, two plausible reasons exist for the SEC’s preference to file court documents under seal in this case.

Firstly, the SEC may seek to avoid interfering with an ongoing criminal investigation or prosecution conducted by the United States Department of Justice (DOJ). As reported by Bitcoinist, the DOJ is currently on the verge of investigating Binance, potentially involving money laundering allegations and other criminal conduct.

Grand jury proceedings, deemed confidential by US statute, could be taking place, and the SEC aims to “safeguard” the secrecy of these proceedings. According to Stark’s analysis, by filing documents under seal, the SEC ensures that its actions do not disrupt or jeopardize any activities undertaken by the DOJ.

Secondly, the SEC’s motion to seal may be driven by the need to protect the safety or identity of a wit

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Author: Ronaldo Marquez

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