The US Securities and Exchange Commission (SEC) filed solicitation on the freezing of digital assets held by Binance.US.
Exchange chief Changpeng Zhao clarifiedthat the freezing of assets, if approved by the court, threatens only the American division, and not the main Binance.
As writes The BlockThe commission requested an asset freeze due to allegations by executives and Zhao himself of diverting client funds to his own investment funds.
“The SEC respectfully states that this assistance is needed on an expedited basis to ensure the safety of client assets. […] We take into account the defendants’ years of experience in violating, defying US laws, evading regulatory oversight and open questions about various financial transfers, custody and control of client assets, ”the regulator said in a statement.
The American division of the exchange published an appeal on Twitter, in which it called the agency’s actions “unreasonable.” Representatives of the platform assured that customer funds are safe.
This afternoon, the SEC filed a motion seeking a TRO and preliminary injunction against https://t.co/AZwoBOgsqS attempting to, among 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
“Despite years of service, SEC officials have expressed no concerns about the security of client assets. […] We are disappointed with this action and look forward to being defended in court,” the company said.
On June 5, the SEC sued Binance and Changpeng Zhao. The regulator brought 13 charges, including the sale of unregistered securities.
Reports later emerged that the Commission’s claims were similar to those brought by the agency against the failed crypto exchange FTX and its subsidiary Alameda Research.
Recall that on June 6, the SEC filed a lawsuit against the Coinbase exchange. The regulator also alleges that the platform violated securities laws.
Update (06/07/23, 13:55 (Kyiv/MSK): Changes have been made to the title and the first paragraph with clarified information.
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