What Does the SEC’s Sealed Motion Mean for Binance

A rare sealed motion filed by the SEC against Binance could signal significant changes for the crypto giant and its users.

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  • SEC files a sealed motion against Binance, a rare move in legal proceedings.
  • The motion includes over 35 exhibits and a declaration from an SEC trial attorney.
  • Speculations arise about the SEC’s intentions.

In a move that puzzled many, the Securities and Exchange Commission (SEC) filed a sealed motion against Binance. This rare legal maneuver allows the SEC to submit sensitive information without public disclosure. 

The filing has sparked speculation about what this could mean for Binance and the broader cryptocurrency market. 

The Sealed Motion and Its Implications

On Monday, August 28, the SEC submitted a sealed motion in its ongoing case against Binance. The motion included more than 35 exhibits and a declaration from Jennifer Farer, an SEC trial attorney. 


John Reed Stark, a former SEC official with nearly 20 years of experience in the SEC Enforcement Division, said that the SEC filing a document under seal is very rare.  

Unlike criminal prosecutorial filings, SEC motions are usually filed openly, serving the public interest by making the SEC’s actions and use of U.S. tax dollars transparent. 

According to Stark, sealed filings usually indicate the presence of sensitive information. He outlined two reasons the SEC might opt for a sealed filing. 


For one, the SEC might want to protect a witness or company. However, the agency usually redacts the document rather than sealing it. 

Another possibility is that the SEC wants to avoid interfering with or revealing details about a criminal investigation by the U.S. Department of Justice (DOJ). 

Stark speculates that the sealed motion likely relates to an existing DOJ investigation into Binance. In particular, the investigation may involve money laundering allegations or other criminal conduct. 

The DOJ’s investigation may include confidential informants, listening devices, or an active arrest warrant. Given how rare sealed SEC filings are, Stark notes that the situation is tricky to decipher and the outcome challenging to predict. Still, the situation indicates that Binance’s legal troubles in the US are far from over.  

On the Flipside

  • On August 3, reports surfaced that the DOJ prosecutors are debating whether charges against Binance could trigger a “run” on the exchange.    
  • Speculation over a DOJ investigation against Binance goes back to 2022. News outlets then reported that the agency may charge Binance for money laundering.  

Why This Matters

The outcome of this case could set a precedent for how crypto exchanges are regulated in the U.S., influencing future SEC actions against other platforms.

Read more about SEC’s lawsuit against Binance: 

Binance, SEC Near Compromise? Protective Order Sent to Magistrate

Read more about Worldcoin’s performance amid increased scrutiny: 

Worldcoin (WLD) Slides 45% in August: What Went Wrong?

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

David Marsanic

David Marsanic is a journalist for DailyCoin who covers the intersection of crypto, traditional finance, and government. He focuses on institutionalized crypto entities like major cryptocurrency exchanges and Solana, breaking down complex topics into easy-to-understand writing. David's prior experience as a business journalist at various crypto and traditional news sites has enabled him to maintain a critical approach to news while adhering to high journalistic integrity standards.