Binance asks court to make SEC comply with rules of conduct after ‘misleading’ press release
The SEC said that Binance and its CEO were able to commingle and divert customer funds — something that courts have not determined.
Binance’s filing notes that, on June 17, the companies reached an agreement with the SEC regarding a consent order that dictates how Binance.US can use its funds.
However, almost immediately after that agreement, the SEC published a press release that the Binance companies call misleading.
SEC press release
The SEC’s press release claims that Binance and its CEO, Changpeng Zhao, had control of certain customer assets and that those parties were able to “commingle” or “divert” customer assets.
The SEC also said that the companies were able to commit those actions “as [it had] alleged.” In fact, the case has not yet reached a ruling on the SEC’s allegations.
The Binance-related companies asserted in their latest filing that there is no evidence that BAM Trading Services and BAM Management US Holdings misused funds in any way. They called the SEC’s press release “disappointing” and warned that the release could create confusion in the market and taint the jury pool.
The defendants have now asked the court to issue an order that compels the SEC to comply with rules of conduct that have already been set out for the practice of law.
Those rules prohibit misleading extrajudicial statements that could have a material impact on the case, especially statements that can be expected to circulate among the public.