The SEC filed a temporary restraining order to freeze the assets of Binance US. Binance responded: disregarding the safety of user assets.

The SEC requested to freeze the assets of the Binance US platform. It should be emphasized that in the restraining order, the SEC hoped that the court would allow Binance.US users to continue to withdraw funds and had no intention of freezing the users’ assets. Binance.US emphasized that the platform is operating normally and deposits and withdrawals are normal, while Binance founder Changpeng Zhao (CZ) emphasized that Binance main site users will not be affected.
Allegation that Binance US affiliate purchased yacht
The U.S. Securities and Exchange Commission (SEC) filed multiple securities law violations on June 5 against Binance Holdings Co., Ltd. (Binance), its U.S. subsidiary BAM Trading Services Inc. (BAM Trading), and founder Changpeng Zhao.
A paragraph in the lawsuit states:
BAM CEO B’s concerns are well-founded. Accounts owned by market makers Merit Peak and Sigma Chain, BAM and Binance have involved tens of billions of dollars in funds. For example, as of 2021, at least US$145 million has been transferred from BAM to the Sigma Chain account, and another US$45 million has been transferred from the B account of BAM Trust Company to the Sigma Chain account, and Sigma Chain spent US$11 million from this account to purchase a yacht.
The SEC seems to be based on this, believing that this is no different from FTX misappropriating user assets, and further requires the freezing of Binance US’s assets.
SEC
According to legal documents, the SEC listed multiple reasons for freezing Binance’s assets:
Prevent the defendant from destroying, tampering with, and concealing relevant records.
This requires the defendant to declare that he will provide detailed accounts
This will speed up the evidence search process
protect investors
The SEC noted:
In view of the defendant's years of illegal behavior, including ignoring U.S. laws, evading supervision, openly conducting various fund transfers, and controlling user assets, the SEC implores the execution of a temporary restraining order to ensure the safety of user assets as soon as possible and prevent the loss of any available assets.
Binance US: SEC disregards the safety of user assets
Binance.US tweeted that user assets are safe and the platform will operate normally, with deposit and withdrawal functions normal, and criticized the SEC's request for a ban as baseless and merely trying to gain an advantage in litigation rather than caring about the safety of user assets. . It states:
Although Binance.US has provided information to the SEC to ensure the safety of user assets, we are disappointed that the SEC still insisted on filing a motion seeking a temporary restraining order and preliminary injunction.
In fact, the SEC’s temporary restraining order clearly mentioned that it hopes the court will allow Binance.US users to continue to withdraw funds. Binance.US also mentioned in a tweet that the temporary restraining order does not seek to freeze user assets.
Binance founder Changpeng Zhao (CZ) emphasized that Binance main site users will not be affected.
Clarification: this could only affects https://t.co/hSHrrlF7o7, IF granted by the court.
It does NOT affect https://t.co/9rMMAmc1G9. Funds are#SAFUhttps://t.co/Xedzc0tyuM
— CZ Binance (@cz_binance) June 6, 2023
The injunction submitted by the SEC requires Binance.US to provide accurate accounting information. If approved by the court, this will also be the first complete and public accounting report of a Binance-owned company.
This article SEC filed a temporary restraining order to freeze the assets of Binance US. Binance responded: disregarding the security of user assets. First appeared on Chain News ABMedia.