The legal team representing the US Securities and Exchange Commission (SEC) in a civil case against cryptocurrency exchange Binance is seeking court permission to file sealed documents. In an August 28 filing with the US District Court for the District of Columbia, the SEC re asked the ability to submit confidential filings in its ongoing case against Binance, Binance.US, and Binance CEO Changpeng Zhao (CZ). The exact details of the motion have been sealed, leading to speculation that it may contain sensitive information.
Former SEC official John Reed Stark suggested that the request for sealed documents could indicate an ongoing criminal investigation by the US Department of Justice (DOJ). Binance has reportedly been under investigation for potential money laundering and violations of sanctions involving R ussian entities. Stark proposed that The sealed SEC documents might relate to the DOJ's ongoing Binance investigation or upcoming indictments. Binance might not object to the SEC's motion to seal due to concerns about revealing exculpatory evidence or serious criminal charges related to its activities.
Previously, Binance's peer-to-peer platform made changes such as banning Russian residents from using fiat currencies other than the ruble and removing certain sanctioned Russian financial institutions from available payment options. Binance is said to be considering all options regarding Russia, including the possibility of a full exit.
In June, the SEC initiated a lawsuit against Binance, Binance.US, and CZ, alleging that they offered unregistered securities to US users and operated without proper registration as an exchange or broker-dealer clearinghouse. The Commodity Futures Trading Commission (CFTC) also filed lawsuits against Binance and CZ, who responded with a motion to dismiss in July. Both cases remain pending as of the time of this report.
