The U.S. Securities and Exchange Commission (SEC) has requested a restraining order to temporarily freeze the assets of Binance.US in its emergency appeal to the district court.
After filing a lawsuit against Binance and CEO Changpeng Zhao (CZ), the SEC made a series of notable requests from the court, emphasizing that its stance was clear.
by the SEC DC District CourtIn an application to Binance’s US subsidiary, Binance.USholding and operating companies of BAM Management US Holdings And BAM Trading Servicesassets attached to freezing for approval requested. Also in this context Changpeng Zhao (CZ) held by freezing cryptocurrencies requested.
Regulatory agency, CZ’s can use client funds as they wish Zhao and Binance executives while claiming Buying an 11 million dollar yacht and similar amount Binance USD (BUSD) He argued that these customer assets were used for individual purposes, including buying and selling.
The request is to ensure the safety of client assets and to prevent the depletion of available assets for any judicial decision. an emergency described as. This is the case in the cryptocurrency industry. to more edits While pointing to the above, it may also be the beginning of important results for other major actors.
Given the years of Defendants’ violating behavior, their disregard of United States law, their avoidance of regulatory oversight, and open questions regarding various financial transfers and the custody and control of Customer Assets, the SEC warrants the dissolution of existing assets for any decision and to ensure the safety of customer assets. We respectfully advise that this assistance is necessary on an accelerated basis to prevent
Description from the Binance front
via social media by Binance CEO CZ in the statement If this decision is made by the court, it will just add Binance.US and global Binance customers funds safe will happen highlighted.
From Binance.US official account in the statement This precautionary decision unwarranted it was mentioned. However, during the trial user assets are safe It was underlined that:
The injunction is unwarranted and relies more heavily on the SEC Team taking advantage of the litigation against genuine concern about the safety of client assets. Despite years of work, until recently, SEC personnel were not concerned with the security of client assets. It all started recently. This disappointing temporary freeze order came despite the information we provided to the SEC about the security of client assets.
Additional requests that stand out between the lines
The SEC was not limited to just this in its application to the court. From Binance and Binance.US in the submitted petition explanation of why a preventive measure should not be applied assets held for the benefit of BAM customers at the time of claim bring back requested. This is usually the from another country means to be returned to their original owners or to another specific location.
The SEC, on the other hand, is out of court, owned by Binance and Binance.US prohibiting the destruction of important documents or records can be used in court by requesting an order critical files took steps to protect it.
These claims are the SEC’s actions against Binance and Binance.US. part of the legal process and is usually given to stop certain actions or take certain actions until the outcome of a case is determined.
If the order is accepted, Binance will have five days to ensure that only Binance.US has access to client funds; and within 30 days all customer assets new wallets that only Binance.US can access will be transferred.
Binance’s comprehensive first X-ray
If the case proceeds as the SEC intended, that would be the case. First full and public accounting of Binance and its affiliates will be.
Binance last year Mazars Group published a partial accounting of its financial position performed by their obligations did not disclose which was a major shortcoming. Mazars suspended its work with crypto firms after Binance released their report and following criticism.