In a recent development, Judge Amy Berman Jackson denied a motion filed by Binance, the popular cryptocurrency exchange, which aimed to halt the Securities and Exchange Commission (SEC) from making public statements about their ongoing case.
The court ruling, issued on Monday, June 26, dismissed Binance’s claims that the SEC’s statements could influence the case and potentially bias the jury pool.
Binance had alleged that the SEC published misleading statements that could harm the case and unfairly affect public opinion.
However, Judge Jackson clarified that the court should not engage in “wordsmithing” the parties’ press releases. Her order emphasized that the agency’s public relations efforts were unlikely to significantly impact the proceedings.
The motion from Binance came after the SEC issued a press release on June 21, restating its allegations regarding the commingling of user funds by Binance’s leadership.
This followed an agreement between the two parties regarding the handling of assets of Binance.US. The SEC had sought to freeze the exchange’s assets to protect its U.S. customers.
Binance responded to the SEC’s press release, accusing the regulator of disseminating misleading information about the mishandling of customer funds by Binance and its CEO, Changpeng Zhao.
Legal experts weighed in on the court’s decision, with some suggesting that Binance’s motion appeared frivolous and more of a marketing strategy than a sound legal argument.
While the ruling may not directly impact the merits of Binance’s case, it was not considered a favorable outcome for the exchange.
In addition, the court established a timeline for the early proceedings. Binance is scheduled to present its case on September 21, 2023, followed by the plaintiff’s legal arguments on November 7, 2023. Replies will be heard starting from December 12.