- The SEC asserts that Eeon has represented itself unsuccessfully in the past.
- Eeon wanted to intervene in the SEC’s complaint against Binance on behalf of clients.
The U.S. SEC and Binance both filed replies about “Eeon,” a company that wanted to intervene in the SEC’s complaint against Binance on behalf of clients.
Binance and the SEC have apparently opposed Eeon’s request to intervene in the action, arguing that it does not comply with the requisite legal standards for intervention and permission, as stated by the U.S. District Court for the District of Columbia. The SEC asserts that Eeon has represented itself unsuccessfully in the past.
Does Not Fulfill Standards for Intervention
In addition, the SEC asserts that the Securities Exchange Act forbids private plaintiffs from participating, rendering Eeon’s request improper. The SEC maintains that Eeon’s intervention would be futile since the company’s arguments are consistent with those of the defendants and do not fulfill the standards for intervention.
Binance said that Eeon’s petition was denied because the SEC had not given its approval, Eeon had not shown that it was a genuine party of interest, and Eeon had not fulfilled the legal prerequisites for intervention.
Moreover, the SEC and Binance and its CEO Changpeng Zhao (CZ), the defendants in the SEC’s action, both oppose Eeon’s involvement in the case. On the other hand, Changpeng Zhao, CEO of Binance, is requesting that a lawsuit filed by the US Commodity Futures Trading Commission (CFTC) be dismissed on the grounds that the CFTC has overstepped its authority.
Also, the biggest cryptocurrency exchange in the world, Binance, has filed a petition in a court in Northern Illinois claiming that federal officials are acting illegally outside of their jurisdiction. The CFTC has filed suit against Zhao and his business, alleging that it sold crypto derivatives to retail investors in violation of federal law.
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