Sealing documents in the Binance case could be a marker for a criminal investigation, according to the former SEC official.
John Reed Stark states that the US Department of Justice may have or may have already filed charges against Binance. This suggests that a request in civil court to have documents sealed was intended to preserve the secrecy of this possible criminal investigation.
Former SEC official says Binance may face new lawsuit
In the civil lawsuit filed against Binance, the United States Securities and Exchange Commission (SEC) side requests that the documents be allowed to be sealed and submitted. This request from the SEC was made as part of a lawsuit filed against Binance, Binance.US, and CEO Changpeng Zhao. The sealed document request was interpreted as the SEC may be planning to file an application containing sensitive information.
According to former SEC official John Reed Stark, the request for sealed documents could signal an ongoing criminal investigation by the U.S. Department of Justice. There are reports that Binance is being investigated for money laundering allegations and potential sanctions violations related to Russian assets.
“A confidential US SEC filing is likely related to an ongoing US Department of Justice investigation into Binance and could, directly or indirectly, reveal the contents of a future US Department of Justice indictment against Binance or an already sealed indictment.” said. Stark also noted that Binance would likely not oppose the SEC’s sealing motion to avoid the public disclosure of possible incriminating evidence or serious criminal allegations.
What’s Up With The Secret U.S. SEC Motion Relating to Binance?
In the U.S. SEC/Binance litigation, the U.S. SEC has filed a sealed motion for leave to file documents under seal, according to an SEC court filing late yesterday. Filing a court document “under seal” allows… pic.twitter.com/cmx6gdh2so
— John Reed Stark (@JohnReedStark) August 29, 2023
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