The U.S. Securities and Exchange Commission (SEC) is not yet done with Binance, the world’s largest centralized crypto exchange platform by trading volume, as it has filed an emergency motion asking a court to freeze the assets of Binance.US and other associated companies across the world.
Filed late Tuesday night at the District of Columbia U.S. District Court, the emergency motion asked the court to issue a temporary restraining order against Binance, Binance.US and CEO Changpeng Zhao (CZ), requesting eight actions.
The said actions include the freezing of the assets of Binance.US and the return of fiat and crypto assets held by its U.S. customers.
The emergency motion also asked the court to restrict the company from concealing, altering, or destroying records.
“As part of the SEC’s emergency motion, the SEC seeks (1) an order to show cause why a preliminary injunction should not be granted as to the defendants; (2) an order freezing the assets of BAM Management; (3) an order directing the defendants to repatriate assets held for the benefit of BAM Trading’s or BAM Management’s (together “BAM”) customers; (4) an order for other relief concerning the custody and control of BAM customers’ assets; (5) an order prohibiting the destruction of records by the defendants; (6) an order requiring sworn accountings of certain assets from the defendants; (7) an order authorizing expedited discovery from the defendants; and (8) an order granting alternate means of service,” the financial watchdog said in a press release.
The move, according to the SEC, is its way “to ensure that Binance.US customers’ assets are protected and remain in the United States through the resolution of the SEC’s pending litigation of this matter.”
It is worth noting that the freezing order is only applicable to two U.S. holding companies of Binance and not to the non-U.S. regulated international crypto exchange platform with the other applicable to accounts held at the defunct Silvergate Bank Axos and other institutions, including Prime Trust.
On Tuesday, SEC chairman Gary Gensler said that the 13 charges filed against Binance alleged that “Zhao and Binance entities engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law.”
Binance immediately responded to the news about the SEC filing the emergency motion in an attempt to quell potential unrest and anxiety among its clients, and called the motion “unwarranted” and executed on an “expedited basis.”
Binance also said users’ assets are “safe and secure” and the platform “continues to be fully operational with deposits and withdrawals functioning as normal.”
“While we are disappointed by this action, we look forward to defending ourselves in court,” Binance said in a tweet.
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