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Former US SEC enforcement chief John Reed Stark during an X Space said the U.S. Securities and Exchange Commission (SEC) lawsuit against Binance will witness a drama on Monday. Stark believes the SEC has a better chance against Binance as the exchange is accused of non-cooperating.
Moreover, Magistrate Judge Faruqui has ordered the SEC to “show cause” to maintain sealed or redacted documents related to the motion to compel, seeking depositions from Binance.US CEO and CFO.
Former SEC Official on Binance Vs US SEC
In an X space on September 18, former US SEC enforcement chief John Reed Stark discussed and answered questions related to market manipulation, the Binance Vs SEC lawsuit, and other enforcement actions by the SEC.
Regarding the US SEC v. Binance lawsuit, Stark believes the SEC’s argument on depositions from Binance.US CEO and CFO, crypto custodian Ceffu’s (formerly Binance Custody) used for Binance.US, and interrogatories are enough to gain control in the case. He said the SEC has the luxury of judicial oversight in the Binance case and hearing on Monday is crucial for both parties.
According to the last filing, Magistrate Judge Faruqui has asked the SEC to show cause related to the motion to compel, arguing that Binance has failed to cooperate and share details as per the earlier agreed-upon consent order. At 3:00 PM, the Magistrate Judge is going to hear arguments from the SEC on non-cooperation from Binance, questioning Binance.US on the protective order and lack of cooperation.
“You could refer that to the criminal authorities and say, look, Binance is lying to us in their depositions. So they violate a bunch of things because they did that. They’re lying to us in the documents subpoenas but they’re withholding certain documents that are relevant, and they’ve taken other steps to either mislead us or obstruct our investigation and then you get to this kind of process-related crime.”
John Reed Stark said the Binance lawsuit will end sooner than Coinbase, as there is a fraud allegation against Binance. The SEC will surely attack Binance’s action to withhold details while their auditor has revealed more information.
Read More: “Expect Some Fireworks” at Next Binance Vs SEC Hearing: Ex-SEC Official
Binance Rejects SEC’s View on Discovery Requests
Binance.US filed a motion for a Protective Order to dissuade the market regulator from accessing some of its business files and content. Binance asserts the SEC seeking more information is against the consent order.
A possible decision on the protective order and motion to compel to reveal more documents and dispositions from executives. However, Binance continues to fight against the SEC’s plan to gain jurisdiction over the crypto industry.
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