News

Binance.US Claims SEC Asset Freeze Would Harm Customers, Cripple Business

Key Points:

  • Binance.US is fighting a Securities and Exchange Commission request to freeze billions of dollars of assets during a legal fight.
  • The company says this move would cripple its business and hurt customers.
  • One of its banking partners has already informed the company it will no longer hold its assets starting on June 14.
Binance.US is urging a federal judge to reject a Securities and Exchange Commission request to freeze billions of dollars of assets on the cryptocurrency exchange during a legal fight with the regulator.

The company argues that the move would cripple its business and hurt customers. “Operations would quickly grind to a halt” without the ability to pay employees, vendors, suppliers, professionals, or to maintain the trading platform, Binance.US attorneys said Monday in a court filing. “With a freeze of all corporate assets, banking partners would most likely cease to honor requests to transfer funds for any purpose, including customer redemptions.”

The SEC sought the asset freeze after suing Binance.US, Binance Holdings Ltd., and founder Changpeng Zhao last week, alleging “blatant disregard of US securities laws” and “years of violative conduct” that put customer funds at risk. Binance.US is also owned by Zhao.

According to the June 5 lawsuit, the violations included mishandling customer funds and misleading investors and regulators. The SEC filed an emergency action application for a temporary restraining order to freeze Binance.US’s assets in an attempt to protect customer funds, including through the repatriation of client investments held abroad. Binance has disputed the allegations.

The case is SEC v. Binance, 23-cv-01599, US District Court, District of Columbia (Washington, DC).

The lawsuit has already had an impact on the exchange’s business, as one of its banking partners has informed Binance.US that it will no longer hold its assets starting on June 14, according to the filing. The same partner froze all activity on the company’s account until after the court rules on the SEC’s motion.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Thana

Coincu News

Thana

I am a news editor at Coincu, where I produce daily editorial packages and manage the knowledge and review article sections. Before journalism, I earned a Bachelor's degree in Global Logistics and Supply Chain Management from Northampton University and studied news journalism at Press Association Training.

Recent Posts

Best Cryptos to Invest in December 2024: Qubetics Surges Past $2.6M as Solana Records Big Whale Pump and Polkadot Aims for $6

Best Cryptos to Invest in December 2024: Qubetics surges past $2.6M, Solana’s whale pump ignites…

1 hour ago

Bitcoin Trader Turned $100M in His 20s—Now Reveals 5 Altcoins to Build a $50M Portfolio, With Memecoins Leading the Way!

As Bitcoin reaches unprecedented heights and the market surges, he's highlighting five altcoins poised for…

3 hours ago

Which Crypto Will Explode in the 2024-2025 Bull Run?

With the crypto market reaching new peaks, many are eager to discover digital currencies poised…

3 hours ago

Dogecoin and Shiba Inu Approach $1, but All Eyes Are on XYZVerse’s Push to $10!

XYZVerse, blending sports passion with meme energy, is set to make a significant impact, uniting…

3 hours ago

Will Bitcoin Crash or Soar Past $105K in 2024?

Will Bitcoin Crash?" seems to be one of the most controversial questions, as the price…

4 hours ago

The Best Crypto for Passive Income? 10% Weekly Gains and 20% Final Surge—Qubetics Mirrors Cosmos’ Early Success!

There’s always that one coin people wish they hadn’t overlooked. For many, Cosmos ($ATOM) is…

5 hours ago

This website uses cookies.