A day after slapping a lawsuit on crypto alternate Binance, the SEC requested the court docket to freeze the property of Binance.US on Tuesday night. The SEC additionally requested the decide to repatriate each fiat and crypto held by Binance.US’s clients.
The request for the freezing order applies to the Binance.Us firms and never to the alternate’s non-US entities. Besides, the order would additionally apply to dozens of accounts held by Binance.US at totally different banking establishments corresponding to Axos Bank, Prime Trust, the defunct Silvergate Bank, and different establishments.
The SEC alleges that two overseas entities – Sigma Chain and Merit Peak – managed by Zhao, are additionally concerned in improperly comingling billions of {dollars} of shoppers’ funds, with Binance’s funds. SEC stated that the quick restraint order was essential. It added:
This will “prevent the dissipation of available assets for any judgment, given the Defendants’ years of violative conduct, disregard of the laws of the United States.”
In its lawsuit filed earlier this week, the SEC has accused Binance and Zhao on 13 separate counts of defrauding buyers, working as an unregistered broker-dealer and clearing home, in addition to improperly commingling funds.
Binance.US Responds Saying Funds Are SAFU
Soon after the SEC pushing for the restraint order, Binance.US made a public announcement on Twitter adding: “User assets remain safe and secure and the platform continues to be fully operational with deposits and withdrawals functioning as normal”.
Binance.US added that the request for a preliminary injunction is pointless and appears to be extra concerning the SEC Staff gaining a bonus within the authorized course of reasonably than genuinely caring concerning the security of buyer property.
The alternate stated that till lately, the SEC Staff didn’t specific any considerations concerning the security of buyer property, regardless of years of engagement. However, the corporate’s authorized workforce has been in fixed communication with the SEC Staff previously week, addressing their considerations about buyer asset security.
Binance stated that regardless of offering info to guarantee the SEC Staff concerning the security of buyer property, they nonetheless determined to file a movement for a short lived restraining order and preliminary injunction. “We are disappointed by this action but are ready to defend ourselves in court,” added Binance.
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