SEC takes steps to freeze assets of Binance.US
SEC takes steps to freeze assets of Binance.US
The Securities and Exchange Commission (SEC) has filed a temporary restraining order against cryptocurrency exchange Binance, Binance.US and its owners' assets after the regulator filed 13 charges against the companies for violating the country's laws.
The SEC said it requested the asset freeze in the original lawsuit. However, the court order has the potential to expedite the process and facilitate the repatriation of client assets held by Binance.US.
The commission on Monday filed a lawsuit in federal court in Washington against Changpeng Zhao, the founder and CEO of Binance, accusing him of diverting client funds into his own investment funds to use at his discretion, including buying an $11 million yacht and buying BUSD, The Block reported.
"The SEC respectfully submits that this relief is necessary on an expedited basis to ensure the safety of client assets," the SEC said in its court filing.
The document also said the court order could prevent Binance and Changpeng Zhao from hiding assets that they claim are not subject to the court's jurisdiction. In addition, the regulator has requested that a federal judge order Binance's holding company, Binance.US, and Changpeng Zhao to provide certified financial statements.
In doing so, the SEC wants the court to allow Binance.US to continue to provide its clients with services to repurchase their assets from the company.
In response to the SEC's action, Binance.US said on its Twitter page that all charges are without merit and that it looks forward to defending itself in court.
We previously wrote that the SEC was suing Binance and its CEO, Changpeng Zhao.
The Binance exchange is one of the largest cryptocurrency platforms in the world in terms of daily platform turnover and number of active clients. The exchange has its own asset, which is used as an internal unit of payment in the Binance ecosystem.
