The SEC moves against Binance once again
The SEC has made an unusual filing against Binance, most likely related to money laundering. Reports indicate the Department of Justice is weighing fraud charges, raising concerns about the possible fallout for crypto.
The SEC recently made an unusual move in its legal battle with Binance, the world’s largest crypto exchange. The move involves filing a sealed court document with more than 35 exhibits. Filing “under seal” is not common for the SEC, and it lets the agency submit sensitive information to the court without making it publicly accessible.
John Reed Stark, a former SEC official who worked at the agency for almost 20 years, remarked that this action is strange and unusual, and that its significance cannot be overstated. This strongly suggests that the document contains sensitive information about non-public allegations, such as money laundering and other potential violations.
It is worth noting that last June the SEC charged Binance with several violations, including mishandling customer funds and misleading investors. This ongoing dispute appears to be escalating, as it is possibly tied to public aspects of the business and potential criminal activity.
Recent reports also state that the Department of Justice is considering fraud charges against Binance. That could have consequences for the business similar to those FTX faced in 2022.