SEC asks court to freeze Binance.US assets, but exchange assures users are safe

by Jun 7, 2023CryptoNews0 comments

The U.S. Securities and Exchange Commission (SEC) has filed an emergency motion in court to temporarily stop Binance.US, its parent company Binance and its CEO Changpeng Zhao (CZ) from operating in the U.S. market. The motion, filed on June 6, requests the court to order eight actions against the defendants, including freezing their assets and returning the funds of U.S. customers.

Binance.US, a crypto exchange that serves U.S. customers, responded to the motion on Twitter, saying that “user assets remain safe and secure” and that the platform “continues to be fully operational with deposits and withdrawals functioning as normal.” The exchange also claimed that the SEC’s motion was “unwarranted” and based on a litigation strategy rather than a genuine concern for customer safety.

The exchange said it had been in dialogue with the SEC for the past week, providing information to assure the regulator of the security of customer assets. However, the SEC filed the motion anyway, seeking a temporary restraining order and preliminary injunction against Binance.US and its CEO.

Binance.US said it was disappointed by the SEC’s action and vowed to defend itself in court.

The SEC’s motion comes on the same day that the SEC sued Coinbase, another major U.S. crypto exchange, for allegedly offering unregistered securities. The SEC accused Coinbase of operating as an unregistered broker, national securities exchange, or clearing agency since 2019, violating the disclosure rules for securities markets.

The lawsuit against Coinbase is similar to the one against Binance.US, as both exchanges are accused of offering unregistered securities to U.S. customers.

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