SEC vs Binance update: Judge attempts to broker a compromise
|- The Judge presiding on the hearing issued a new order, attempting to get the entities to compromise on Binance-related assets in the US.
- The US SEC and Binance have both presented their understanding of a negotiated temporary freeze or expedited discovery plan.
- A court hearing is likely by 2 PM EDT and the SEC vs. Binance case remains on a fast track.
Binance, the largest cryptocurrency exchange by volume, argues that the Securities & Exchange Commission’s (SEC) temporary restraining order would effectively end the exchange’s business in the US.
In an unexpected move, the Judge set to preside over the hearing on Tuesday ordered the two entities to compromise and present a negotiated temporary freeze plan.
Also read: Two key dates over the SEC request to freeze Binance assets
Binance and SEC submit an expedited discovery plan ahead of June 13 hearing
The US financial regulator is keen on freezing Binance US funds, while the exchange argues that the SEC’s move is “draconian” and will effectively end BAM Trading Services’ operations. Binance urged the court to deny the SEC’s motion to freeze the exchange’s funds.
In an unprecedented move, the judge asked both entities to come to an agreement on a negotiated temporary freeze or an expedited discovery plan and present their understanding by 1 PM EDT. The two parties worked on the tight deadline and are still awaiting a hearing, likely to occur at 2 PM EDT.
What does the SEC seek?
The SEC seeks extraordinary relief against Binance, an asset freeze that repatriates billions of dollars. The US financial regulator believes that the evidence of fraud is overwhelming. SEC believes that Binance’s customer funds are at a risk and freezing the exchange’s funds would assuage these concerns.
The case therefore remains on a fast track and it is atypical of the SEC to seek an emergency relief against such a large entity as Binance.
John Reed Stark, former chief of the Office of Internet Enforcement of the SEC believes that the June 13 hearing is the most important SEC crypto-related enforcement action in history.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.