US Securities and Exchange Commission Moves to Freeze Binance US Assets

The US Securities and Exchange Commission (SEC) has reportedly filed a request with a federal court to freeze all assets belonging to Binance US. This action comes just two days after the SEC filed a lawsuit against Binance, accusing the crypto exchange of violating federal securities laws. The purpose of freezing the assets is to prevent any dissipation of Binance US’s available funds that could hinder potential judgments.

Legal Showdown: SEC Requests Asset Freeze on World’s Largest Crypto Exchange

The SEC’s decision to seek a freeze on Binance US assets has significant implications for the ongoing legal battle between the commission and the world’s largest cryptocurrency exchange. Sources familiar with the matter reveal that the SEC aims to prevent the defendants from depleting their assets, considering their history of violating US laws and showing a disregard for legal obligations. It is important to note that the freezing order specifically targets Binance’s two US holding companies, which are known to have accounts with financial institutions such as Axos Bank, Prime Trust, and the now-defunct Silvergate Bank. Should the court grant the requested order, Binance US would be compelled to return customers’ fiat currencies and cryptocurrencies. This move demonstrates the SEC’s determination to take more stringent measures against Binance and its founder, Changpeng Zhao, commonly known as CZ. If granted, Binance US would be required to return customer funds, highlighting the SEC’s commitment to taking decisive actions against Binance and its founder. The move underscores the SEC’s focus on investor protection and regulatory enforcement in the cryptocurrency sector.

This development showcases the escalating nature of the legal dispute between Binance and the SEC, with the commission taking significant steps to protect investors and enforce regulatory compliance within the cryptocurrency industry.

Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments. This is a news article only. 

Author: Puskar Pande

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