SEC, Binance unite against Eeon’s lawsuit intervention

Amaka NwaokochaJul 29, 2023SEC, Binance unite against Eeon’s lawsuit interventionThe U.S. SEC claims that Eeon has a history of repeatedly unsuccessfully representing itself in court cases.3076 Total views6 Total sharesListen to article 0:00NewsJoin us on social networksThe United States Securities and Exchange Commission (SEC) and Binance have submitted responses regarding the entity “Eeon,” which has sought to intervene on behalf of customers in the SEC’s case against the crypto exchange.

According to the U.S. District Court for the District of Columbia, Binance and the SEC objected to Eeon’s request to intervene in the lawsuit, citing that it does not meet the necessary legal requirements for intervention and consent.

The SEC claims that Eeon has a history of repeatedly unsuccessfully representing itself in court cases.Screenshot of  SEC’s response to the intervention petition. Source: CourtListener

The SEC also claims the Securities Exchange Act prohibits private litigants from intervening, making Eeon’s request impermissible. The SEC also argues that Eeon’s participation in the lawsuit would have no significant impact, as their claims align with those of the defendants and fail to meet the requirements for intervention. Additionally, the agency says Eeon’s counterclaims are contradictory in nature.

Binance provided three grounds for dismissing Eeon’s petition: the lack of consent from the SEC, Eeon’s failure to establish itself as a legitimate party of interest and its failure to meet the necessary legal requirements for intervention.Screenshot of Binance’s response to the intervention petition. Source: CourtListener

Both the SEC and the defendants — Binance and its CEO Changpeng “CZ” Zhao — are united in their opposition to any intervention by Eeon in the SEC’s lawsuit against Binance and its CEO.

Related:Hester Pierce strikes back against SEC crypto warning to accounting firms

Meanwhile, Binance has filed a motion to dismiss the lawsuit brought against it by the U.S. Commodity Futures Trading Commission (CFTC), arguing that the agency is attempting to regulate foreign individuals and corporations outside the U.S., going beyond the limits of its statutory jurisdiction. However, due to the court’s extended deadlines for the submission of responses by both the CFTC and Binance, the dismissal process is expected to extend into 2024.

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