Court says it doesn’t need to “wordsmith” Binance and SEC’s announcements
A judge has signed an order rendering Binance's complaints invalid.
The relevant order, signed by Judge Amy Berman Jackson, declared:
“While all of the lawyers in this case should adhere to their ethical obligations … it is not … necessary or appropriate for the Court to get involved in wordsmithing the parties’ press releases.”
The order also stated that there is currently no need to reiterate that lawyers should meet their ethical requirements. It additionally said that it is not clear that PR statements published so far will materially influence proceedings.
The court additionally set out a timeline for proceedings in an unrelated but simultaneous order. There, it said that Binance’s responsive pleadings are due on Sept. 21 and that the SEC’s oppositions are due on Nov. 7. All replies are due on Dec. 12.
It is still unclear when the case might fully conclude.
Binance said SEC made misleading statements
The latest developments are the result of the first three weeks of the U.S. Securities and Exchange Commission (SEC)’s case against Binance.
After the SEC sued Binance and related parties on June 5, the agency asked the court to restrict the movement of Binance.US-related funds. Binance and the SEC later reached an agreement that placed fewer restrictions on company and customer funds.
Later, on June 21, the U.S. Securities and Exchange Commission (SEC) published a press release indicating that this agreement had been reached.
Binance immediately responded by stating that the SEC’s press release contained misleading facts. The SEC’s announcement specifically suggested that Binance members could have “commingled” or “diverted” funds. The SEC’s also said the court had found the relevant allegations to be true even though the case is still ongoing.
As a result, Binance asked for courts to prevent the SEC from making misleading statements — a request that has now been denied with the latest motion.