SEC demands freeze of Binance US assets | CoinDesk JAPAN | Coin Desk Japan

The U.S. Securities and Exchange Commission (SEC) on June 6 asked a court for a temporary injunction to freeze assets related to Binance.US. Specifically, it seeks to freeze assets associated with Binance US’s holding and operating companies, BAM Management US Holdings and BAM Trading Services.

On the 5th, the SEC sued Binance US, Binance Global and founder and CEO Changpong Zhao, alleging that companies associated with Zhao were able to secretly access funds of Binance US customers. , alleging numerous compliance and administrative violations.

“The SEC respectfully presents the immediate need for this remedy to ensure the safety of client assets and prevent the dissipation of assets available to any decision. Defendants’ longstanding violations, Considers disregard of U.S. law, evasion of regulatory oversight, and unresolved questions regarding various financial transfers and custody of client assets, including those defendants claim not to fall under the jurisdiction of U.S. courts. –as described in the complaint, memorandum, and supplemental materials,” the SEC wrote in its injunction.

If the injunction is granted, Binance will allow only Binance.US access to customer funds within 5 days, and will transfer all customer funds to a new wallet accessible only by Binance.US within 30 days. It will be.

The SEC filed a complaint yesterday, saying that Binance has accused two companies associated with Mr. Zhao, Sigma Chain and Merit Peak, of “billions of dollars” in client assets held by BAM Trading. He claimed to have allowed access.

Meanwhile, Binance said in a statement that no Binance US client assets were at risk.

“All user assets on Binance and related platforms, including Binance.US, are safe and secure, and we will vigorously defend ourselves against any claims to the contrary.”

｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
| Image: Binance CEO Changpong Zhao (CoinDesk)
｜Original: SEC Seeks Temporary Restraining Order to Freeze Binance.US Assets