SEC Requests Temporary Restraining Order To Freeze Binance.US Assets
The U.S. Securities and Exchange Commission (SEC) requested a court to issue a temporary restraining order, aiming to freeze assets associated with Binance.US.
In a court filing submitted to the D.C. District Court, there is a request to authorize the freezing of assets linked to BAM Management US Holdings and BAM Trading Services. These two entities serve as the holding and operating companies for Binance.US.
On June 5th, the SEC filed a lawsuit against Binance.US, Binance Global, and Changpeng Zhao, the founder and CEO of Binance.
The lawsuit alleges various compliance and control shortcomings, including accusations that Zhao-affiliated companies had covert access to funds belonging to Binance.US customers.
Today’s filing stated that the SEC seeks expedited approval to freeze assets connected to Binance.US due to concerns over customer asset safety, Defendants' past violations, evasion of regulatory oversight, and unresolved financial transfer and custody issues.
Another filing requests an order to explain why a preliminary injunction should not be issued, along with additional orders such as directing the defendants to repatriate assets belonging to BAM customers, prohibiting the destruction of records, and various other measures.
If approved, Binance will be given a five-day window to restrict customer fund access exclusively to Binance.US. Furthermore, within 30 days, all customer assets will be moved to new wallets accessible solely by Binance.US.