Binance.US Pushes Back Against SEC’s Asset Freeze Request
In Brief
The attorneys for Binance.US and Binance CEO Changpeng Zhao argued that the SEC’s temporary restraining order shouldn’t be denied. There is no risk to customer assets.
Binance.US lawyers have argued against the US Securities and Exchange Commission’s (SEC) request for a temporary restraining order to freeze its assets. The legal team for Binance.US and CEO Changpeng Zhao stated in a court filing on Monday that customer assets were not at risk, dismissing the SEC’s claims as an ’emergency’ manufactured for its own purposes.
The attorneys further contended that compliance with the SEC’s proposed measures would harm Binance.US customers and effectively shut down the business operations of BAM Trading Services Inc. and BAM Management US Holdings Inc., the entities running Binance.US.
Last week, the SEC filed a lawsuit against Binance and Zhao, accusing them of a “blatant disregard of the federal securities laws” and accumulating 13 charges. Following this, the agency lodged an emergency motion for a temporary restraining order, seeking to freeze the assets of BAM Trading and BAM Management to “ensure the safety of customer assets”.
Binance.US and CZ
Binance and Zhao’s attorneys pointed out that the SEC first indicated a potential investigation involving Binance.US in late February 2023. Despite consistent interaction over the following three months, the SEC never raised concerns about the safety and security of Binance.US user assets, according to the legal team.
However, on May 30, 2023, the SEC’s stance shifted when the agency expressed in a letter to BHL that it had “significant questions and concerns” about the safety of customer assets and the availability of funds at BAM Trading. The SEC and Binance continued their discussions until June 2, with the SEC filing the lawsuit on June 5.
- The US government has opposed Bittrex US’s motion to allow customer withdrawals of their crypto assets, citing the company’s intention to enable these withdrawals. The government has argued that the company’s proposal is premature and is attempting to prioritize creditors in an unethical manner.
Read more:
- Binance.US agrees to acquire Voyager assets
- The Battle for Control: Binance.US and Changpeng Zhaos Stake
- Binance US to Pause USD Fiat Withdrawals From June 13
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About The Author
Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.
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Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.
