US Regulator Aims To Halt Binance.US Operations And Freeze Assets
The SEC urged the judiciary to issue an immediate injunction against Binance's operations to freeze the company's assets in the US.
A swift request was put forward by the SEC at the US District Court, located in the District of Columbia. The plea entailed an urgent call for suspending the US-based operations of Binance, coupled with a restitution of all crypto and fiat funds held by their clients.
Citing Binance's "persistent infringement" record, the SEC has sought the court's intervention on the following matters:
- A comprehensive freeze on Binance's assets within the US.
- Restoration of all fiat and cryptocurrency funds owed to or intended for US clientele.
- Imposition of a ban on defendants from disposing of, modifying, or hiding financial documentation.
- Procurement of a complete enumeration of the assets of Binance.US's clientele, including their respective identities.
The SEC's petition calls for the court's direction for Binance to relocate all customer holdings tied to US clients to Binance.US accounts within a span of ten days. This also involves transferring all client crypto assets to fresh wallets featuring new private keys, to be held by BAM Trading staff within the US.
Binance.US's representatives have rejected the legitimacy of such a plea, arguing that the company's legal advisors have supplied the SEC with all the requisite data affirming Binance users' asset security. In their perspective, this regulatory move seems like a ploy to gain an upper hand in the impending legal battle.
Changpeng Zhao, Binance's Chief Executive Officer, promptly assured customers about the safety of their investments. He stated that even if the SEC's petition is ratified by the Court, the impact would be limited to Binance.US, leaving Binance.com untouched.
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