The US Securities and Exchange Commission (SEC ) filed a motion yesterday (Tuesday) to obtain a temporary restraining order to freeze the assets tied to BAM Management US Holdings and BAM Trading Services, the holding and operating firms for Binance.US.
In the latest court filing at the D.C. District Court, the US regulator requested the asset freeze “on an expedited basis.”
“The SEC respectfully submits that this relief is necessary on an expedited basis to ensure the safety of customer assets and prevent the dissipation of available assets for any judgment, given the Defendants’ years of violative conduct, disregard of the laws of the United States, evasion of regulatory oversight, and open questions about various financial transfers and the custody and control of Customer Assets – including by Defendants who claim they are not subject to the Court’s jurisdiction – as described in the Complaint, Memorandum of Law, and supporting materials,” the court.
The motion came a day after the US securities watchdog filed a lawsuit against Binance, its two US affiliates , and Changpeng Zhao, the global unit’s CEO, with 13 civil charges. They are blamed for operating illegally in the US, commingling customer funds, wash trading, and much more.
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Show Case Demand
In a separate court filing yesterday (Tuesday), the SEC sought show cause from Binance and other defendants on “why a preliminary injunction should not be granted.” It also sought to show cause on other things, including “an order directing defendants to repatriate assets held for the benefit of BAM customers,” and “an order prohibiting the destruction of records by the defendants.”
If the court grants the order, Binance.US will have five days to ensure only it has access to customer funds and have to move them to transfer them to separate wallets in 30 days. In the initial lawsuit on Monday, the SEC alleged that BAM Trading had allowed Sigma Chain and Merit Peak, two companies tied to Zhao, to access “billions of U.S. dollars” of customer funds.
Funds Are Safe
Following the latest motion, Binance.US, in a tweet, assured that “user assets remain safe and secure” and the platform is fully operating with functional deposits and withdrawals.
“The filing of the preliminary injunction is unwarranted and based more on the SEC Staff obtaining an advantage in litigation versus genuine concern about the safety of customer assets,” the tweet added. “Until recently – despite years of engagement – the SEC Staff has not expressed a concern about the safety of customer assets.”
This afternoon, the SEC filed a motion seeking a TRO and preliminary injunction against https://t.co/AZwoBOgsqS attempting to, amongst other things, freeze https://t.co/AZwoBOgsqS corporate assets. User assets remain safe and secure and the platform continues to be fully…
— Binance.US 🇺🇸 (@BinanceUS) June 6, 2023
Meanwhile, the lawsuit triggered a massive outflow of funds from Binance and its US affiliate, indicating growing customer distrust of these platforms.
The US Securities and Exchange Commission (SEC ) filed a motion yesterday (Tuesday) to obtain a temporary restraining order to freeze the assets tied to BAM Management US Holdings and BAM Trading Services, the holding and operating firms for Binance.US.
In the latest court filing at the D.C. District Court, the US regulator requested the asset freeze “on an expedited basis.”
“The SEC respectfully submits that this relief is necessary on an expedited basis to ensure the safety of customer assets and prevent the dissipation of available assets for any judgment, given the Defendants’ years of violative conduct, disregard of the laws of the United States, evasion of regulatory oversight, and open questions about various financial transfers and the custody and control of Customer Assets – including by Defendants who claim they are not subject to the Court’s jurisdiction – as described in the Complaint, Memorandum of Law, and supporting materials,” the court.
The motion came a day after the US securities watchdog filed a lawsuit against Binance, its two US affiliates , and Changpeng Zhao, the global unit’s CEO, with 13 civil charges. They are blamed for operating illegally in the US, commingling customer funds, wash trading, and much more.
Keep Reading
Show Case Demand
In a separate court filing yesterday (Tuesday), the SEC sought show cause from Binance and other defendants on “why a preliminary injunction should not be granted.” It also sought to show cause on other things, including “an order directing defendants to repatriate assets held for the benefit of BAM customers,” and “an order prohibiting the destruction of records by the defendants.”
If the court grants the order, Binance.US will have five days to ensure only it has access to customer funds and have to move them to transfer them to separate wallets in 30 days. In the initial lawsuit on Monday, the SEC alleged that BAM Trading had allowed Sigma Chain and Merit Peak, two companies tied to Zhao, to access “billions of U.S. dollars” of customer funds.
Funds Are Safe
Following the latest motion, Binance.US, in a tweet, assured that “user assets remain safe and secure” and the platform is fully operating with functional deposits and withdrawals.
“The filing of the preliminary injunction is unwarranted and based more on the SEC Staff obtaining an advantage in litigation versus genuine concern about the safety of customer assets,” the tweet added. “Until recently – despite years of engagement – the SEC Staff has not expressed a concern about the safety of customer assets.”
This afternoon, the SEC filed a motion seeking a TRO and preliminary injunction against https://t.co/AZwoBOgsqS attempting to, amongst other things, freeze https://t.co/AZwoBOgsqS corporate assets. User assets remain safe and secure and the platform continues to be fully…
— Binance.US 🇺🇸 (@BinanceUS) June 6, 2023
Meanwhile, the lawsuit triggered a massive outflow of funds from Binance and its US affiliate, indicating growing customer distrust of these platforms.
