SEC calls for freeze of Binance US assets

1 year ago 81

urgent petition to court

The U.S. Securities and Exchange Commission (SEC) today filed an urgent complaint in the District Court for the District of Columbia in a lawsuit against cryptocurrency exchange Binance and its CEO Changpong Zhao (CZ).

The SEC has asked the court to freeze the assets of Binance US (technically the operating company). He demanded that all fiat and cryptocurrencies held by the company or traded by its users be transferred to the United States.

The SEC filed the complaint to ensure the safety of customer assets, considering that Binance and others have been engaged in illegal activities for several years. He also explained that it was to prevent the loss of assets due to the judgment. In addition to unlawful conduct, some defendants argue that the court in which the complaint was filed has no jurisdiction.

If the SEC’s motion is successful, all eligible assets must be transferred to the newly created wallet within 30 days. The private key of this wallet and related equipment and software can only be managed by the operating company and employees of Binance US, and it is prohibited to share it with Binance itself or Mr. CZ.

In the complaint filed the day before, the SEC stated that it would seek to freeze the assets. This time, I requested that I clearly specify the content and respond immediately.

SEC Complaint

The SEC filed a lawsuit against Binance itself, Binance US, and CZ on the 5th. As for the exchange, it is technically prosecuting the operating company. In total, the SEC has filed 13 charges, including alleging that Binance diverted customer assets without segregation.

The first complaint alleges that two CZ-controlled accounts, Merit Peak and Sigma Chain, were used to transfer tens of billions of dollars in US dollars, including Binance and other related entities. The SEC also points out that Sigma Chain used some of this money to purchase a yacht worth about ¥1.5 billion ($11 million).

At first, the SEC required the filing of certified financial reports and the retention of records and information, in addition to freezing the assets.

connection: The SEC’s Binance lawsuit causes the virtual currency to plunge to the $25,000 level.

Binance US Announcement

In response to the SEC filing, Binance.US issued a statement on Twitter. The SEC argued that the allegation was unjustified, saying it wanted to freeze the assets of Binance US.

Binance US said it provided the information to the SEC to resolve concerns about the safety of customer assets. On that basis, the SEC appears to have filed this allegation.

The company stressed that customers’ assets are safe and that deposits and withdrawals are proceeding normally. He said he was looking forward to fighting it in court.

This afternoon, the SEC filed a motion seeking a TRO and preliminary injunction against https://t.co/AZwoBOgsqS attempting to, amongst other things, freeze https://t.co/AZwoBOgsqS corporate assets. User assets remain safe and secure and the platform continues to be fully…

—Binance.US (@BinanceUS) June 6, 2023

What is Binance

Operates a major virtual currency exchange with a large number of traded stocks, trading volume, and registered users. In addition, we are developing a wide range of businesses such as the activities of the venture capital department, the provision of educational content, and philanthropic activities. In November 2010, the company announced its entry into the Japanese market.

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