• A US judge has said the court cannot wordsmith the SEC and Binance’s press releases.
• Binance had filed a motion to stop SEC from making public statements on the case but Judge Amy Berman Jackson denied it.
• The court said either party has to “adhere to their ethical obligations at all times“.
SEC sued crypto exchange Binance in early June and published a press release alleging that Binance had commingled user funds. In response, Binance filed a motion that sought to stop the SEC from making public statements on the case, alleging that misleading statements could impact the case and taint the jury pool.
Three days after filing, US judge Amy Berman Jackson denied Binance’s motion saying that „the court cannot ‚wordsmith‘ either party’s press releases.“ She added that while all of the lawyers in this case should adhere to their ethical obligations at all times, intervention was not necessary or appropriate for the court to get involved in wordsmithing parties’ press releases nor is it clear that agency’s public relations efforts will materially affect proceedings in this case.
SEC alleged commingling of user funds by Binance which led them file for a freeze on exchange’s assets. They also issued a statement reiterating its allegations of commingling of user funds by exchange leadership after both parties reached an agreement on handling of assets of Binance.US.
In response, Binance claimed that SEC had published misleading facts about CEO Changpeng Zhao mishandling customers fund and filed a motion seeking orders against regulator – specifically they wanted Judge Jackson to order counsel to comply with ethical obligations and not make “misleading extrajudicial statements that may materially impact court proceedings“.
Judge Amy Berman Jackson denied Binance’s motion noting that either party has to “adhere to their ethical obligations at all times“. The order stated it was not necessary or appropriate for Court intervention as it won’t be able to wordsmith each party’s press releases nor would have any effect on proceedings.