A federal judge has denied Binance’s request to limit the language used by the U.S. Securities and Exchange Commission (SEC) in press releases related to Binance.US’ management of customer funds. Judge Amy Berman Jackson of the D.C. District Court ruled that it is not necessary for the court to wordsmith the parties’ press releases. It is not apparent that Court intervention … is needed at this time, or that it is necessary or appropriate for the Court to get involved in wordsmithing the parties’ press releases, she said.
BAM Trading, which operates under the name Binance.US, had filed a complaint about the SEC’s press release on Friday, claiming it was misleading and designed to introduce unwarranted confusion into the marketplace. The company’s lawyers also argued that there is no evidence that BAM customer assets have been dissipated, commingled, or misused in any way.
The judge gave Binance until September 21 to respond to the SEC’s allegations, and the SEC’s reply to the company’s pleading will be due November 7. The SEC’s lawsuit against Binance and CEO Changpeng CZ Zhao was filed on June 5, alleging the company violated federal securities laws.
The SEC has taken legal action against several crypto companies in recent months, citing a need to protect investors from a risky, largely non-compliant industry.