Giovanni Russo The U.S. Securities and Exchange Commission (SEC) is seeking court approval to take action against Binance US by freezing its cryptocurrency assets. The SEC considers this measure as an urgent necessity to ensure the safety of customer funds.
SEC Urgently Files Motion to Freeze Assets Held by BAM Management US Holdings and BAM Trading Services
In a decisive move, the U.S. Securities and Exchange Commission (SEC) filed an emergency motion on Tuesday, urgently requesting a temporary restraining order from the court. The goal is to freeze the assets controlled by BAM Management US Holdings and BAM Trading Services, the primary entities responsible for managing Binance US, a subsidiary of the prominent cryptocurrency exchange Binance.
The court order explicitly prohibits Binance from engaging in any activities that may lead to the destruction, alteration, or concealment of relevant records. Furthermore, the SEC issued an additional court order emphasizing that BAM Management or Changpeng Zhao (CZ), the head of Binance, must provide compelling reasons to prevent the imposition of a preliminary injunction.
The SEC asserts that the restraining order is crucial to safeguard customer assets. In their filing on Tuesday, the SEC stated, “The SEC respectfully submits that this relief is necessary on an expedited basis to ensure the safety of customer assets.” This action follows the SEC’s lawsuit against Binance and CZ, accusing them of operating an unregistered exchange, brokerage, and clearing house.
This news coincides with the SEC’s recent lawsuit against Coinbase, a San Francisco-based exchange. In a similar vein, the SEC accuses Binance of offering unregistered securities and allowing U.S. residents to use its global platform.
Considering the defendants’ history of violating laws, disregarding U.S. regulations, evading oversight, and with lingering questions about financial transfers and the custody of customer assets, the SEC deems the restraining order necessary. The SEC maintains that the court has the authority to hear this case, compel the defendants to appear, and that the case should be heard in the district.
What are your thoughts on the SEC’s decision to freeze Binance US cryptocurrency assets in order to prioritize customer safety? Share your opinions about this matter in the comments section below.
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Frequently Asked Questions (FAQs) about customer safety
What is the reason behind the SEC’s actions to freeze Binance US cryptocurrency assets?
The SEC is taking action to freeze Binance US cryptocurrency assets in order to prioritize customer safety. They believe it is necessary to ensure the protection of customer funds amid allegations of unregistered activities and securities offering by Binance.
What is the role of BAM Management US Holdings and BAM Trading Services in this situation?
BAM Management US Holdings and BAM Trading Services are the primary operating entities responsible for managing Binance US. The SEC is seeking to freeze the assets under their control through a temporary restraining order, as part of their efforts to address the alleged regulatory violations.
Has Binance been accused of any specific wrongdoing?
Yes, Binance, along with its head Changpeng Zhao (CZ), is facing a lawsuit from the SEC. They are being accused of running an unregistered exchange, brokerage, and clearing house. The SEC alleges that Binance offered unregistered securities and permitted U.S. residents to use its global platform.
How does the SEC expect this action to impact customer funds?
The SEC believes that freezing Binance US cryptocurrency assets is necessary to safeguard customer funds. By taking control of the assets and preventing any activities that could compromise customer assets, the SEC aims to prioritize the safety and protection of customers in light of the alleged regulatory violations.
Are there any other cryptocurrency exchanges facing similar actions from the SEC?
Coinbase, a San Francisco-based exchange, is also facing a lawsuit from the SEC, highlighting a similar pattern of allegations. The SEC has accused both Binance and Coinbase of unregistered activities and securities offerings. These actions reflect the SEC’s efforts to enforce regulatory compliance within the cryptocurrency industry.
4 comments
SEC trying to freeze Binance US assets?! They really serious about customer safety. Binance accused of unregistered stuff, huh? SEC means business!
SEC wants court approval to freeze Binance US crypto assets citing customer safety. Lawsuit against Binance & CZ for unregistered activities. Big move by SEC!
Binance US under fire from SEC. Assets could get frozen. Customer safety is the focus. Lawsuit claims unregistered activities. This is getting intense!
SEC coming down hard on Binance US. Freezing assets, accusing of unregistered securities offering. Binance better have some strong arguments. The battle begins!