© Reuters URGENT: SEC Calls for Binance.US Asset Freeze
CriptoFácil – The United States Securities and Exchange Commission (SEC) filed an emergency motion in Washington federal court on Tuesday night (06), asking a judge to freeze the assets of Binance.US. The regulator wants a freeze on both fiat currencies and cryptocurrencies held by the platform’s customers.
It is worth noting that the freezing order only applies to Binance’s two US holdings: BAM Management US Holdings and BAM Trading Services. That is, the order does not apply to Binance Global.
According to a report by CNBC, the order would apply to dozens of accounts held at Axos Bank, the defunct Silvergate Bank, Prime Trust and other banking institutions.
SEC x Binance
As CriptoFácil reported, the SEC filed a lawsuit against Binance and its founder and CEO Changpeng Zhao (CZ) on Monday (05), claiming that the exchange and CZ broke US securities rules.
According to the SEC, Binance would have violated investor protection rules by operating platforms without registrations. Furthermore, the regulator alleged that the cryptocurrency exchange misrepresented trading controls, sold unregistered securities, among other violations, bringing the total to 13 counts.
In the motion filed tonight, the regulator stated that the emergency restraining order is necessary to “avoid the dissipation of assets available for any judgment, given the defendants’ years of violative conduct, disregard of U.S. laws, evasion of regulatory oversight and open questions regarding various financial transfers and the custody and control of Customer Assets,” says the SEC.
If the request is accepted, Binance will have five days to ensure that only Binance.US has access to customer funds. Furthermore, within 30 days, all customer assets will be transferred to new wallets that only Binance.US can access.
In a note on Monday, Binance said that user funds on Binance.US were never at risk.
Binance has yet to officially comment on the freeze order. This news will be updated as soon as there is a statement.
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