Binance.US, the U.S. arm of the largest crypto exchange by trading volume, has asked the court to reject the U.S. Securities and Exchange Commission's (SEC) request to freeze its assets. The firm said such a move would harm both its business and customers. The company stated that its operations would quickly come to a stopping point when it could not pay employees, vendors, suppliers, and professionals and maintain the trading platform. - The exchange also pointed out that banking partners would probably deny transferring the funds when its assets are frozen.
- Binance.US' request came nearly one week after the SEC filed an emergency action application for a temporary restraining order, asking the court to freeze the assets of Binance.US.
- At the time, Binance said user assets remain safe, adding that the platform continues to be fully operational, with deposits and withdrawals functioning as usual.
- However, the platform then had to suspend U.S. dollar (USD) deposits as of June 9 and said the customers would have time until June 13 to withdraw their funds in USD since banking partners would close USD withdrawal channels on this date.
Earlier in June, the SEC also filed a 136-page complaint against Binance and its CEO Changpeng Zhao (CZ) over U.S. law violations with 13 charges. - The allegations in the complaint include mishandling customer funds, misleading investors and regulators, violating securities laws, creating an extensive web of deception, conflicts of interest, lack of disclosure, wash trading, and calculated evasion of the law.
- Rival crypto exchange Coinbase was also sued by the SEC over alleged U.S. securities law violations, one day after the complaint against Binance.
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