In a swift response to the lawsuit it filed against Binance, the U.S. Securities and Exchange Commission (SEC) has requested a temporary restraining order to freeze the assets associated with Binance’s U.S. operations. This move comes just hours after the SEC lodged a 136-page complaint against the world’s largest cryptocurrency exchange and its CEO, Changpeng Zhao, citing numerous violations and deceptive practices.
Following the filing of the lawsuit on Monday, the SEC submitted a motion on Tuesday to a District of Columbia court, seeking an order to freeze the assets of BAM Management US Holdings and BAM Trading Services, which are the holding and operating companies for Binance.US. The motion specifically requests the court to freeze both known and unknown assets of the defendants.
The SEC’s motion also includes additional requests, such as measures pertaining to the custody and control of customer assets held by Binance.US. The regulator argues that these actions are crucial to safeguard the interests of customers who use the trading platform.
The SEC’s filing highlights the urgent need for these measures due to Binance’s alleged years of noncompliant behavior, disregard for U.S. laws, evasion of regulatory oversight, and the existence of unresolved concerns surrounding financial transfers and the custody of customer assets. The SEC’s aim is to prevent the dissipation of assets that could hinder potential judgments, given Binance’s history of regulatory violations and questionable practices.
The court’s response to the SEC’s motion will have significant implications for Binance.US and its operations, as the freeze on assets could impact the exchange’s ability to conduct business and meet its obligations to customers.
