SEC files sealed motion in Binance case

During the SEC case against Binance, the regulator filed a sealed motion containing 35 exhibits, a filing by the agency’s attorney, and the proposed order.

The commission did not want public disclosure of the materials submitted to the court.

According to CoinDesk, observers saw in this a sign of “bad news” for the crypto exchange.

Former SEC lawyer John Reed Stark noted that filing court documents under seal is a “rare step.” He said that in 20 years of his work in the agency’s enforcement division, he cannot recall filings sealed with a seal being submitted.

“It is in the public interest to know and understand how the agency uses funds derived from tax payments. The SEC wants its messages to be heard clearly to prevent future violations in the securities sector,”— the specialist said.

The expert proposed two possible explanations for such actions: the regulator is seeking to avoid interference with the U.S. Department of Justice’s criminal investigation, or is concerned about exposing a witness or the company to risk.

Earlier on June 5, the SEC filed suit against Binance and its chief Changpeng Zhao. The agency charged Binance with 13 counts, including the sale of unregistered securities.

In response, the company issued a statement, in which it said it was prepared to “vigorously defend itself”.