Binance.US’ parent company’s request for a protection order on August 14 to prevent securities regulators from making excessive demands may be on shaky grounds, according to a former official.
In the original filing, BAM complained that the Securities and Exchange Commission (SEC) required excessive information and statements from numerous employees.
BAM therefore sought to obtain a prejudgment attachment from the court. The requested injunction would allow the SEC to fire just four of BAM’s employees, excluding the CEO and CFO, while preventing the regulator from conducting overly extensive investigations. Those cases all relate to an ongoing case the SEC filed against Binance in June.
Former SEC official weighs in
The court has not yet heard Binance.US’ request. However on August 16John Reed Stark – formerly head of the SEC’s Office of Internet Enforcement – weighed in on the matter and predicted the most likely outcome.
Stark said it is likely that the SEC has demanded too much information and that BAM has asked for too much in its protection order. He suggested that the two sides in the case should reach a compromise on the matter.
Stark added that the SEC has previously obtained a consent order or temporary restraining order against Binance.US. This allows for accelerated discovery, meaning courts have to resolve disputes faster than usual, although the process is otherwise routine.
Stark also predicted that Judge Amy Berman Jackson would turn the case over to a magistrate, which happened later in the day. Judge Jackson referred Binance.US’s motion to Magistrate Judge Zia M. Faruqui in a lawsuit.
Finally, Stark noted that he believes the US Department of Justice (DOJ) will soon open or file charges against Binance, further complicating the SEC case. Reports dating back to at least August 2 suggest those DOJ indictments are coming.
The post Former SEC Official Comment on Binance.US’s Petition for Protection appeared first on CryptoSlate.
