SEC requests restraining order to temporarily freeze Binance.US assets News ▸ US ▸ Binance ▸ Regulation
SEC requests restraining order to temporarily freeze Binance.US assets
The regulator also wants Binance.US and related companies to return customer funds.
1 min read
Updated: Jun. 13, 2023 at 9:45 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The U.S. Securities and Exchange Commission (SEC) filed a motion requesting a restraining order against Binance.US on June 6.
That request specifically asks the court to freeze the assets of Binance.US’s parent companies, which are collectively operating under the name BAM. The SEC’s motion also seeks to repatriate assets held for the benefit of customers alongside other relief.
Furthermore, SEC has asked Binance, Binance.US-related companies, and Binance CEO Changpeng Zhao to show why a preliminary injunction should not be entered. This means that the regulator wants restrictions imposed before the trial.
The SEC also aims to have the defendants compelled to provide certain information and prevented from destroying, concealing, or altering records.
The securities regulator said that these actions are needed rapidly in order to ensure customer safety. It said that the defendants violated and disregarded U.S. laws for years. It noted that many questions remain open about intercompany transactions and said that some defendants claim they are not under the court’s jurisdiction.
The SEC originally filed charges against Binance.US and related parties on June 5.
Zhao has attempted to reassure the public by noting that the order will only affect Binance.US — not Binance.com — if the request is granted.
Update: This piece previously suggested that funds held for the benefit of customers would be returned to customers rather than repatriated in general.
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Mike Dalton
Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada's West Coast.
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Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Binance.US
Binance.US will provide secure and reliable cryptocurrency trading to users in the United States.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.