SEC Files Motion for Restraining Order to Freeze Binance US Assets – On Tuesday, the U.S. Securities and Exchange Commission (SEC) requested a federal court to grant a temporary restraining order, effectively freezing the U.S.-based assets of Binance, a prominent cryptocurrency exchange. This legal action was initiated by the SEC in response to allegations of Binance and its CEO, Changpeng Zhao, engaging in deceptive practices.
By filing this motion with the U.S. District Court for the District of Columbia, the SEC intensifies its scrutiny of the largest cryptocurrency exchange globally. The U.S. Securities and Exchange Commission (SEC) made serious accusations against Binance in its motion, claiming that the cryptocurrency exchange had engaged in years of conduct that violated regulations, including showing a “disregard” for U.S. laws and attempting to evade regulatory oversight.
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It is worth noting that Binance operates through a holding company based in the Cayman Islands, with its U.S. affiliate known as Binance.US. Binance responded to the SEC’s motion by stating that it solely pertained to Binance.US. Following the SEC’s filing, Binance.US assured its users that their assets would remain secure and that the platform would continue its regular deposit and withdrawal operations.
The company also expressed its intention to defend itself in court, referring to the SEC’s actions as “unwarranted.” The SEC’s allegations, presented on Monday, included claims that Binance had artificially inflated its trading volumes, diverted customer funds, failed to enforce restrictions on U.S. customers using its platform, and provided misleading information to investors about its market surveillance controls.
In addition to the SEC’s legal actions, Binance is concurrently facing legal proceedings from other U.S. authorities, such as the Commodity Futures Trading Commission (CFTC) and the Department of Justice. This indicates the increasing pressure and scrutiny faced by Binance within the United States.
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