The SEC Still hasn’t subpoenaed Binance about its Binance coin in 2022 as we can see more today in our latest binance news.
The Securities and Exchange Commission’s probe into whether Binance’s token is security might only be the commission asking questions as the CEO of the exchange Changpeng Zhao claimed. This also suggests that the SEC still hasn’t subpoenaed Binance as there was no legally binding subpoena that will compel the exchange to create documents and make the personnel available for questioning. Bloomberg also reported that the investigators are examining whether the 2017 ICO amounted to the sale of a security that should have been registered with the agency. Zhao noted that binance is in regular contact with the authoriteis about its products and also denied that the company was subpoenaed.
Zhao is a well-known critic of the media and equates reporting to playing a game of telephone and even said publicly that he no longer gives interviews to the news outlets that use clickbait titles. BNB is a Binance exchange token which means holders get a discount on the trading fees and that the utility token has a market cap of $471 million and is home to plenty of Defi projects. BNB doesn’t corner equity in Binance but its value fluctuates with the successes or failures of Binance on the market.
If there’s an active investigation into Binance, the SEC could withhold disclosing documents under Exemption 7 as one of the exemptions available that prohibit the release of documents compiled for law enforcement purposes that can be expected to interfere with enforcement proceedings. In order not to tip its hand to the presence of the investigation, the SEC will occasionally answer with neither confirm nor deny. After all, a response from withholding documents due to an investigation could actually be damaging to a company even if the investigation came back clear. The response of confirming nor deny is known as Glomar named after Howard Hughes.
Last year, one of the buzzing topics was not a potential subpoena of Binance but rather if Terra’s founder was subpoenaed by the SEC and attended the Messari Mainnet conference. Kwon denied he got subpoenaed but he later backtracked if the service in New York was proper. It turned however that he was served and Terra lost an appeal. At that time, the SEC responded to a FOIA about Kwon’s subpoena with the Glomar response:
“We do not mean to imply in any way that records responsive to your request exist.”
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