The response to the entity “Eeon,” which wanted to intervene on behalf of clients in the case, has been sent by the SEC and cryptocurrency exchange Binance.
The SEC and Binance oppose Eeon’s petition for intervention because it does not adhere to the legal prerequisites for intervention and consent.Eeon’s motion to intervene in the litigation was rejected by both Defendant Binance and Plaintiff U.S. SEC, according to the District Court for the District of Columbia.
According to the US SEC, Eeon has a history of representing themselves in court, but their claims have regularly failed in federal courts. The SEC has urged the court to dismiss Eeon’s petition for several reasons.
Firstly, since private plaintiffs are not permitted to intervene under the Exchange Act, Eeon’s request is invalid. Secondly, the SEC contends that Eeon’s involvement in the litigation wouldn’t significantly change the outcome because their arguments are similar to those of the defendants.
Finally, Eeon’s petition needs to fulfill the criteria for intervention. Eeon’s counterclaims also conflict in that they seek remedy from the SEC and Binance. Binance gave three reasons to reject Eeon’s petition.
The first reason is the SEC’s refusal to approve; secondly, Eeon’s failure to prove that it has a justifiable conflict of interest; and thirdly, the failure to satisfy the essential legal conditions for intervention. Eeon’s counterclaim was also considered unspecific and irrelevant to the current action.
Therefore, Eeon’s involvement in the SEC’s action against Binance and its CEO is opposed by both the plaintiff (SEC) and the defendants (Binance and CEO Changpeng “C.Z.” Zhao).
In the interim, Binance has filed a move to dismiss the lawsuit filed by the US CFTC, claiming that the U.S. agency lacks the authority to bring a claim against the company’s CEO, C.Z., and that the global cryptocurrency exchange is not subject to its purview.
However, the dismissal procedure is anticipated to go into the following year because of the court’s extended deadlines for submitting responses by both the CFTC and Binance.
