- Attorney John Reed Stark says Binance is poking the bear with its accusation against the Securities and Exchange Commission.
- The former SEC official says that the regulator is likely working with informants, whistleblowers and international law enforcement.
- Stark predicts that the next major event in the SEC vs. Binance lawsuit is the filing or unsealing of criminal charges.
John Reed Stark, former attorney at the Securities and Exchange Commission’s (SEC) enforcement division, said Friday that Binance’s legal motion against the SEC regarding “misleading” statements from the US financial regulator is a bad idea because it is likely to lay the ground for criminal prosecution.
Stark, who shared his views on the matter via Twitter, argues that the SEC’s attorney’s allegations and statements likely reflect information that the regulator has gathered from informants, whistleblowers and criminal investigation agencies. In Stark’s words, Binance is “poking the bear” and asking for the unsealing of criminal charges related to the exchange and/or its executives.
Using litigation as marketing theater is never recommended when there exists a criminal indictment that is being contemplated or is already filed under seal, which is, IMHO, exactly the situation with Binance
Stark said.
Binance Continues To Poke The Bear, Which Could Accelerate Criminal Charges
— John Reed Stark (@JohnReedStark) June 22, 2023
Yesterday, Binance filed a motion in the US SEC Binance enforcement action asking that Judge Amy Berman Jackson prevent SEC attorneys from making public statements asserting that Binance and CZ have… pic.twitter.com/sxcRmqq4hq
Also read: SEC vs Binance update: Judge attempts to broker a compromise
Binance rebuts SEC’s restraining order
The largest exchange by volume filed a motion asking Judge Amy Berman Jackson to prevent SEC attorneys from making public statements alleging Binance and CEO Changpeng Zhao’s mishandling of US-based customer assets.
Binance argues evidence of these allegations has not been presented yet and these statements are likely to “taint” the jury pool. The document is shared here.
Binance’s motion could benefit the exchange’s customers and users holding funds on the exchange, or holders of native token BNB, as it reduces Fear, Uncertainty and Doubt (FUD). However, it is likely to result in an unsealing or filing of criminal indictment, likely being contemplated or already filed under seal, according to Stark.
The former SEC enforcement division attorney said statements made by the regulator's attorneys leave room for speculation that the agency is working with informants, whistleblowers or international law enforcement.
The stark reality is that Binance’s motion is provocative and Binance’s antagonistic, arrogant, accusatory and unorthodox ethics battle-cry could fan the flames of whatever Binance-related criminal prosecution is cooking and instigate criminal prosecutors to act now against Binance
he said.
BNB price declined by 2% since Thursday’s open of $248.9. At the time of writing, the native token of the exchange trades at $242.8.
Binance US didn’t immediately respond to a request for comment.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.