SEC seeks to freeze Binance US assets amid web of deception claims
The US Securities and Exchange Commission (SEC) has sought a temporary restraining order from a federal court to freeze the US assets of leading cryptocurrency exchange Binance. This development follows the recent lawsuit filed by US regulators against Binance and its CEO, Changpeng Zhao, accusing them of operating a “web of deception.” The pressure on the world’s largest cryptocurrency exchange continues to mount.
In the motion submitted to the US District Court for the District of Columbia, the SEC accused Binance of numerous violations spanning several years. These include a “disregard” for US laws and “evasion of regulatory oversight.” The holding company of Binance is located in the Cayman Islands, while Binance.US serves as its US affiliate. Binance has stated that the SEC’s motion pertains only to Binance.US.
In response to the SEC’s motion, Binance.US reassured its users that their assets would remain secure and that normal deposit and withdrawal operations would continue on the platform. The company also expressed its intention to defend itself in court, labelling the SEC’s actions as “unwarranted.”
On Monday, the SEC accused Binance of artificially inflating its trading volumes, misusing customer funds, failing to prevent US customers from accessing its platform, and providing misleading information about its market surveillance controls. In addition to the SEC’s legal actions, Binance faces further scrutiny from the US Commodity Futures Trading Commission and the Justice Department.
