The leading cryptocurrency exchange Binance has made a risky move in the face of impending enforcement action by the US Securities and Change Fee (SEC). It has properly asked Amy Berman Jackson to prevent SEC attorneys from publicly claiming that the company and its CEO, Changpeng Zhao (CZ), had handled their American customers’ property improperly.
As Binance seeks authorized safety, allegations circulate.
Binance’s petition draws attention to an SEC press release in which Gurbir Grewal, the director of SEC Enforcement, claims that CZ and Binance have unrestrained control over customer property, allowing them to mix or reroute this property as they want.
Binance responds forcefully, claiming that the SEC has not provided any hard evidence to support these fees. The company also makes the argument that the SEC’s words could influence the jury’s verdict, necessitating the issuance of a gag order for the SEC’s attorneys in accordance with Washington, DC’s professional conduct rules.
Although there are certain benefits to the movement, many observers fear that it may go wrong.
The Drawback: Will Binance’s Activity Stir Up More Fires?
The movement has some notable benefits. It signals Binance’s assertive and innovative legal approach and will put pressure on the SEC to be more circumspect and constrained in its public remarks about the market. Additionally, the move can gain Binance the Favour of its ardent Twitter following and customers, which is good for business. Last but not least, it might undoubtedly result in a reprimand from Choose Jackson, a terrifying possibility for any SEC staff member.
However, Binance’s actions may very well be viewed as a hostile and arrogant provocation that may prompt felony prosecutors to take early action if a felony indictment is already under discussion or filed in secret.
The SEC has mentioned a criminal investigation of Binance and CZ in its filings. This kind of candour in SEC filings is incredibly rare. The SEC often keeps information concerning concurrent felony investigations under wraps. This deviation from the norm suggests that the SEC may be working with the FBI and criminal prosecutors, which would indicate an impending felony motion.
The World Investigative Panorama: The Need for Binance to Participate
Binance appears to be daring the authorities to prove them wrong with its combative tactic, which challenges the SEC’s moral behavior and calls into doubt its claims of fraud and market manipulation. This arrogance, though, doesn’t augur well for a company that is already in the sights of prosecutors on a number of fronts.
The CFTC and SEC are pursuing charges against Binance for operating a massive crime enterprise. Despite the size of such fines, they conspicuously avoid the issue of money laundering, which will undoubtedly be the focus of a future felony case by the US DOJ against the alternative.
Additionally, the Paris prosecutor’s office is apparently conducting a preliminary inquiry on Binance for money laundering and illegal consumer canvassing. These claims fuel the theory that a criminal investigation led by the US DOJ may be in the works.
Irony, erroneous assurance, and what lies ahead
Binance is under preliminary investigation in Paris for illegal consumer solicitation and money laundering, which complicates the situation. These further claims point to a forthcoming felony investigation led by the US DOJ.
Binance David Prinçay, the president of France, recently disregarded worries that US fees would have an impact on Binance’s operations. However, one may surmise that his consolation stage has been successful considering the French probe.
Although Binance claims there is insufficient evidence to support claims of improper treatment of assets, the proverb “watch out for what you wish for” seems relevant. The question is not “if,” but rather “when,” the next shoe will drop.
