Last week, Binance filed a petition in the SEC sanctions lawsuit requesting Judge Amy Berman Jackson to prevent SEC attorneys from making public statements alleging Binance and CZ mishandled the assets of US-based clients.
Binance referred to a press release issued by the SEC where SEC Executive Director Gurbir Grewal said, “Zhao and Binance have control of the platforms' clients' assets and have been able, as we claim, to mix or redirect client assets as they please.”
The company claimed that the SEC did not provide evidence of any allegations of mixing and argued that the SEC's publicly alleged misappropriation of client assets “risked adversely affecting the jury pool.”
Cryptocurrency exchange Binance had requested that Judge Jackson order the SEC to comply with the Washington DC code of professional conduct, which stipulates that “attorneys shall not make misleading non-judgmental statements that could materially affect court proceedings.”
Judge Denies Binance's Request and Issues a Statement
Judge Jackson dismissed Binance's request just 3 business days after the company submitted its request and without even a response/objection from the SEC.
Judge Jackson, in a text he wrote to the file without adding any additional documents, stated:
“While all lawyers in this case must abide by their ethical obligations at all times, it is not clear that the Court's intervention is currently needed to reiterate this point, or that it is necessary or appropriate for the Court to be involved in writing the parties' press releases. Nor is it clear that the agency's public relations efforts to date will significantly affect the proceedings in this case.”
*Not investment advice.