Former US SEC enforcement chief John Reed Stark during an X Space said the U.S. Securities and Exchange Commission (SEC) lawsuit against Binance will witness a drama on Monday. Stark believes the SEC has a better chance against Binance as the exchange is accused of non-cooperating.
Moreover, Magistrate Judge Faruqui has ordered the SEC to “show cause” to maintain sealed or redacted documents related to the motion to compel, seeking depositions from Binance.US CEO and CFO.
In an X space on September 18, former US SEC enforcement chief John Reed Stark discussed and answered questions related to market manipulation, the Binance vs. SEC lawsuit, and other enforcement actions by the SEC.
Regarding the US SEC v. Binance lawsuit, Stark believes the SEC’s argument on depositions from Binance.US CEO and CFO, crypto custodian Ceffu’s (formerly Binance Custody) used for Binance.US, and interrogatories are enough to gain control in the case. He said the SEC has the luxury of judicial oversight in the Binance case and hearing on Monday is crucial for both parties.
Magistrate Judge Faruqui has asked the SEC to show cause related to the motion to compel, arguing that Binance has failed to cooperate and share details as per the earlier agreed-upon consent order. At 3:00 PM, the Magistrate Judge is going to hear arguments from the SEC on non-cooperation from Binance, questioning Binance.US on the protective order and lack of cooperation.
John Reed Stark said the Binance lawsuit will end sooner than Coinbase, as there is a fraud allegation against Binance. The SEC will surely attack Binance’s action to withhold details while their auditor has revealed more information.