The US Securities and Exchange Commission (SEC) has filed for a temporary restraining order freeze Binance.US assetsBinance’s platform that works exclusively in the US.
The legal action, filed on this exchange (6), seeks approval to freeze assets related to the BAM Beheer American Holdings It is BAM Trading Servicesthe controlling and operating companies of Binance.US.
Moving on, the SEC sued the Binance.USThe Binance worldwide and the founder and CEO, Changpeng Zhao, alleging a series of compliance and auditing errors. The allegations include allegations that companies associated with Zhao have been secretly accessing Binance.US customer funds.
SEC calls for urgency in freezing Binance.US funds
The SEC said the request should be considered urgently, arguing that a protect client assets and avoid wasting resources available for future litigation.
The regulator has expressed concern over years of improper conduct by the defendants, alleging non-compliance with US laws, evading regulatory oversight and outstanding issues related to various financial transfers, as well as asset custody and control from customers.
Another aspect of the order is the pursuit of an injunction requiring justification for not granting an injunction, as well as a request for the defendants to repatriate assets currently held for the benefit of BAM’s clients.
In addition, the SEC is seeking an injunction prohibiting the destruction of records by defendants, along with other additional measures.
“The SEC respectfully states that this action is necessary to quickly secure client assets and prevent the loss of assets available for judgment given the defendants’ decades of infringing conduct, flouting U.S. law, evading of regulatory oversight and pending issues relating to various financial transfers and the custody and control of Client Assets – including by Defendants who claim not to be subject to the jurisdiction of this court – as described in the complaint, memorandum of law and supporting materials” , said a document filed by the SEC.
Binance says user funds are safe
If the request is granted, Binance will have five days to ensure that only Binance.US has access to client funds. In addition, within 30 days, all client assets will be transferred to new wallets accessible exclusively through Binance.US.
The petition filed hinted at asking for a temporary restraining order, with the SEC noting that it would seek a preliminary injunction that could include an asset freeze and “verified accounting”.
In the lawsuit filed by the SEC against Binance, the US regulator alleges that Binance allowed two CZ-linked companies, Sigma Chain and Merit Peak, access to “Billion US Dollars” in customer funds held by BAM Trading.
In response to the lawsuit, Binance attempted to reassure users by stating that customer funds on Binance.US were never at risk.
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Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
