Judge Grants SEC’s Request to Unseal Documents in Binance Lawsuit

A judge has agreed to the SEC’s request to reveal documents in its lawsuit against Binance US. This adds another twist to the SEC’s investigation into crypto rules and its actions against Binance. They’ve agreed to unseal many documents that the SEC handed over last month. 

The next hearing for this case, led by Magistrate Judge Faruqui, is set for September 18. The release comes at the SEC’s own request and with the consent of both parties involved in the case. The SEC started a case against Binance.US, Binance, and CEO Changpeng Zhao in June. 

A part of the filing read, “This Court orders that, seven days from the entry of this Order, Defendants or any nonparty that claims a confidentiality designation regarding documents relating to the SEC’s Motion to Compel provide the Court with their legal basis for maintaining those documents under seal in whole or in part. This Court further orders that the SEC shall have seven days to respond to any filing from Defendants or a nonparty as set forth in paragraph 4 of this Order.”

Binance US made a deal with the SEC to avoid freezing assets by promising more transparency and oversight. But in a recent court filing, the SEC said Binance US’s parent company, BAM, only gave them 220 documents related to the investigation. Some of these were unclear screenshots, and that didn’t convince the SEC that customer assets at BAM were safe from Binance or Zhao.

On August 28, a bunch of hidden documents labeled Docket No. 102 were filed. People thought they might be related to a U.S. Justice Department investigation of Binance. These secret documents add up to 117 pages and include things like Binance US’s internal records, emails, and papers the SEC filed in court.