In a recent development, the Securities and Exchange Commission (SEC) has taken action by filing a motion seeking a temporary restraining order to freeze all cryptocurrency assets held by Binance.US, the US-based subsidiary of Binance exchange.
This move follows the SEC’s official lawsuit against Binance, which was initiated on Monday.
The SEC’s court filing, submitted to the D.C. District Court, specifically requests the approval to freeze assets associated with BAM Management US Holdings and BAM Trading Services, the holding and operating firms for Binance.US.
The SEC argues that this measure is necessary to safeguard customer assets and prevent any dissipation of available funds in light of Binance’s history of non-compliance, disregard for US laws, evasion of regulatory oversight, and the presence of unresolved concerns regarding financial transfers and the custody of customer assets. The details of these allegations are outlined in the Complaint, Memorandum of Law, and supporting materials submitted by the SEC.
Should the court grant the order, Binance will be required to ensure that only Binance.US has access to customer funds within the next five days. Subsequently, within a period of 30 days, all customer assets would be transferred to new wallets accessible solely by Binance.US.
As of now, neither Binance nor its CEO, Changpeng Zhao, have provided any official comments regarding the SEC’s recent motion to freeze all cryptocurrency held on the platform. The situation continues to develop, and further updates may arise in the coming days.