SEC Takes Swift Action, Freezes Binance US Crypto Assets
The US Securities and Exchange Commission (SEC) has swiftly taken action seeking court approval to freeze cryptocurrency assets connected to Binance US in a significant move to “ensure the safety of customer assets.”
Emergency Motion Filed to Protect Customers' Funds and Ensure Compliance
Concerned about the well-being of customers, the US Securities and Exchange Commission (SEC) has filed an emergency motion on Tuesday seeking court approval for a temporary restraining order against BAM Management US Holdings and BAM Trading Services, the primary operating entities managing Binance US, a US subsidiary of the global cryptocurrency exchange, Binance.
Recognizing the urgent need to secure customer assets, the SEC's motion aims to prevent any potential harm while the investigation proceeds. Furthermore, the court order explicitly prohibits Binance from engaging in any actions that could lead to the destruction, alteration, or concealment of pertinent records, emphasizing the gravity of the situation. The SEC is determined to ensure the imposition of a preliminary injunction, demanding compelling reasons to prevent the imposition from BAM Management or Changpeng Zhao (CZ), the head of Binance.
The SEC's focus on customer fund protection remains unwavering. 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.
SEC's Legal Battle Against Binance US Intensifies, Coinbase Also in the Spotlight
Interestingly, the SEC's lawsuit against Coinbase, a well-known San Francisco-based exchange, shares similar allegations. In line with its scrutiny of Binance, the SEC claims that Binance offered unregistered securities and potentially allowed US residents to use 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 a necessary step. The SEC maintains that the court has the authority to hear this case and to compel the defendants to appear and ensure fair proceedings within the district.
What is your take on the SEC's proactive approach to freezing Binance US cryptocurrency assets to safeguard customer interests? Please share your opinions and insights on this matter in the comments section below.
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