U.S. SEC Files Emergency Motion To Freeze Binance US’ Assets

  • The United States SEC has filed a motion to freeze the assets of Binance US. 
  • The securities regulator is seeking a temporary restraining order from the D.C. District Court.
  • The SEC is also seeking a show cause order as to why a preliminary injunction should not be granted. 

The Securities and Exchange Commission (SEC) has filed an emergency motion in the U.S. District Court for the District of Columbia, seeking a temporary restraining order to freeze the assets of Binance US. The filing comes just a day after the securities regulator sued the American arm of the world’s largest crypto exchange and its founder Changpeng Zhao for operating an unregistered securities exchange and misrepresenting trading controls and oversight, among eleven other charges. 

SEC Asks Court To Issue Show Cause Order To Binance US

According to the filing made with the D.C. District Court, the SEC is seeking an order to freeze the assets of BAM Management and BAM Trading, the entities overseeing Binance and its affiliates. The emergency motion filed by the securities regulator also sought an order to show cause “why a preliminary injunction should not be granted”. The SEC sought six other court orders, including one requiring the sworn accounting of “certain assets” from Binance US. 

The SEC respectfully submits that this relief is necessary on an expedited basis to ensure the safety of customer assets and prevent the dissipation of available assets for any judgment, given the Defendants’ years of violative conduct, disregard of the laws of the United States, evasion of regulatory oversight, and open questions about various financial transfers and the custody and control of Customer Assets”

If granted, the order would give Binance five days to make sure that the entity to have access to the exchange’s customer funds is Binance US. Within 30 days of granting the order, all customer funds would have to be transferred to new wallets. In its initial complaint against the crypto giant, the SEC indicated that it would seek the above-mentioned restraining order. 

Source: Read Full Article