The court denies Binance’s motion accusing the SEC behaviour
A judge in the United States has ruled that the court would not alter the language of news announcements from the Securities and Exchange Commission and Binance.
Judge Amy Berman Jackson said in her decision dismissing the crypto exchange’s argument that all parties must “adhere to their ethical obligations at all times.”
On Monday, June 26, Judge Amy Berman Jackson ruled against Binance’s request to prevent the SEC from commenting publicly on the SEC/Binance dispute.
Binance claimed that the SEC had tainted the jury pool with false comments that were disseminated about the case.
Judge Jackson said that the court cannot “wordsmith” any party’s press releases three days after the motion was filed. What her order said was:
“The attorneys involved should always act ethically, but it needs to be clarified that the court has to step in and remind them of that or that it’s proper for the court to help shape the language of the parties’ press releases at this time. The agency’s public relations work has not shown a noticeable effect on the current case processes.”
The SEC’s press statement on June 21 reiterating its charges of commingling user money by the exchange’s leadership prompted Binance’s move.
The declarations were made after an agreement was reached between the two parties regarding the management of Binance’s assets. In an effort to safeguard US consumers, the government requested that the exchange’s assets be frozen.
In particular, the application requested that Judge Jackson issue an order requiring defence counsel to follow all applicable ethical guidelines and to refrain from making “misleading extrajudicial statements that may materially impact court proceedings.”
Former head of the SEC’s Internet Enforcement division John Reed Stark weighed in on the court’s ruling, implying that Binance’s lawsuit may have been for nothing.
He said it was “so frivolous on its face,” more similar to marketing theatre than legal argument. Even if the judge’s ruling doesn’t affect the merits of Binance’s argument, securities attorney James “MetaLawMan” Murphy said it was terrible news for the exchange.
Separately, the court established a preliminary schedule. On September 21, 2023, Binance will submit its case; on November 7, 2023, the plaintiff will argue their side. Beginning on December 12, the court will hear opposing arguments.