• A U.S. judge said courts cannot manipulate the language of the SEC and Binance press releases.
  • However, Judge Amy Berman-Jackson said both parties must “always comply with their ethical obligations” when dismissing the cryptocurrency exchange’s complaint.
  • The SEC sued Binance in early June and released a press release alleging user funds were tampered with.

Judge Amy Berman Jackson on Monday, June 26, dismissed a motion filed by cryptocurrency exchange Binance to prevent the SEC from publicly announcing the SEC-Binance lawsuit.

Binance had alleged that the SEC made misleading statements that could influence the case and tarnish the jury base.

Three days after filing the motion, the court ruled on the motion, and Judge Jackson noted that the court could not “manipulate the language” of either party’s press release.she order read:

All attorneys in this case should always abide by their ethical obligations, but does the court need to intervene at this time to re-emphasize that point, or does the court need to be artfully involved? , or is not clear if it is appropriate. Parties press release.It is also unclear whether the agency’s public relations efforts to date will have a material impact on the legal proceedings in this case.

Binance questioned SEC statement

Binance’s allegations follow an SEC press release on June 21, after the securities regulator reiterated its allegations of commingling of user funds by exchange leadership.

The statement was released after the two parties reached an agreement on the handling of Binance.US assets. The agency had applied for a freeze on exchange assets, citing the need to protect U.S. customers.

In response to the SEC press release, Binance said regulators had released misleading facts about the mishandling of Binance.US client funds by Binance and CEO Changpeng Zhao.

The motion called for an order to regulators, specifically asking Judge Jackson to order attorneys to comply with their ethical obligations and not to:Misleading extrajudicial statements that could seriously affect judicial proceedings

“It wasn’t a very good result for Binance.”

John Reid Stark, Former Chief of the SEC Internet Enforcement Office, commented He noted the court’s decision, suggesting that Binance’s application may not have been worthwhile.

On the surface, it was so frivolous that it looked more like a marketing drama than a legal debate.‘ he pointed out.

Securities lawyer James “MetaLawMan” Murphy said the judge’s order was not good for Binance, even if it did not affect the merits of the lawsuit.

Separately, the court set a schedule for initial proceedings. Binance plans to file the lawsuit on September 21, 2023 before the plaintiffs hold legal arguments on November 7, 2023. The court will hear the answers from December 12th.

By Jules

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