SEC Seeks to Freeze Binance’s US Assets Amid Legal Action

The United States Securities and Exchange Commission (SEC) has requested a federal court to issue a temporary restraining order to freeze the US assets of Binance, the world’s largest cryptocurrency exchange. This motion was filed at the US District Court for the District of Columbia on Tuesday, following a lawsuit against Binance and its CEO Changpeng Zhao the previous day.

The SEC’s lawsuit alleges that Binance engaged in a series of deceptive practices, thereby increasing scrutiny on the crypto exchange. The SEC’s motion accuses Binance of long-standing violations, including a disregard for US laws and evasion of regulatory oversight.

Binance, whose holding company is based in the Cayman Islands, operates in the US through its affiliate, Binance.US. In response to the SEC’s motion, Binance stated that the action is specifically directed at Binance.US.

Binance.US responded to the SEC’s filing by assuring its users that their assets remain secure and that the platform will continue to support normal deposit and withdrawal activities. The company expressed its intention to defend itself in court and described the SEC’s actions as unwarranted.

The SEC’s allegations against Binance include accusations of artificially inflating trading volumes, misusing customer funds, failing to prevent US customers from accessing its platform, and providing misleading information about its market surveillance controls. Alongside the SEC’s legal action, Binance is also facing legal proceedings from the Commodity Futures Trading Commission and the US Department of Justice.

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