SEC Seeks Court Approval to Freeze Binance US Crypto Assets, Citing Customer Safety Concerns
Seeking court approval, the U.S. Securities and Exchange Commission (SEC) is actively pursuing a measure to freeze cryptocurrency assets linked to Binance US. In order to to “ensure the safety of customer assets,” the securities regulator deems this action as an urgent necessity.
SEC Files Emergency Motion to Freeze Assets Held by BAM Management US Holdings and BAM Trading Services
The U.S. Securities and Exchange Commission (SEC) took decisive action on Tuesday by filing an emergency motion. This motion urgently requests a temporary restraining order from the court, aimed at freezing the assets under the control of BAM Management US Holdings and BAM Trading Services. These are the primary operating entities responsible for managing Binance US, a U.S. subsidiary of the prominent cryptocurrency exchange Binance.
In addition, the order explicitly forbids Binance from engaging in any activities that could lead to the destruction, alteration, or concealment of pertinent records. Another court order issued by the SEC further emphasizes that BAM Management or Changpeng Zhao (CZ), the head of Binance, must present compelling reasons to prevent the imposition of a preliminary injunction.
Clarification: this could only affects https://t.co/hSHrrlF7o7, IF granted by the court.
It does NOT affect https://t.co/9rMMAmc1G9. Funds are #SAFU https://t.co/Xedzc0tyuM
— CZ
Binance (@cz_binance) June 6, 2023
The securities watchdog in the United States maintains that the restraining order is indispensable in safeguarding customer funds. “The SEC respectfully submits that this relief is necessary on an expedited basis to ensure the safety of customer assets,” the SEC filing on Tuesday notes. The action comes in the wake of the SEC’s lawsuit against Binance and CZ, accusing them of running an unregistered exchange, brokerage, and clearing house.
The Tuesday news also comes on the heels of the SEC’s lawsuit against Coinbase, the San Francisco-based exchange. In a similar vein, the SEC has accused Binance of offering unregistered securities and said it purportedly permitted U.S. residents to utilize its global platform.
“Given the defendants’ years of violative conduct, disregard of the laws of the United States, evasion of regulatory oversight, and open questions about various financial transfers and the custody and control of customer assets,” SEC thinks that the restraining order is necessary. The SEC maintains that the court has the authority to hear this case and to compel the defendants to appear, and that the case should be heard in the district.
What are your thoughts on the SEC’s actions to freeze Binance US cryptocurrency assets in order to prioritize customer safety? Share your thoughts and opinions about this subject in the comments section below.
