SEC Wants to Freeze Binance Assets to Protect US Customers

The Securities and Exchange Commission (SEC) has filed an emergency action seeking a temporary restraining order to freeze the assets of Binance while requiring defendants to repatriate assets held for the benefit of customers of Binance.US. The SEC says the action is designed to protect the funds of US customers.

The action follows this week’s enforcement litigation filed against Binance and its founder and CEO, Chengpang Zhao. Binance is the largest crypto exchange in the world.

According to the SEC, the request to the courts seeks emergency relief against Binance Holdings Limited, BAM Trading Services Inc., BAM Management US Holdings, Inc., and Zhao, to ensure that Binance.US customers’ assets are protected and remain in the United States through the resolution of the SEC’s pending litigation of this matter. The “tailored order” requests that the defendants:

“…comply with specified relief concerning the custody and control of customer assets, and refrain from transferring them other than in the ordinary course of business, provided such ordinary course transfers are not made to any entity or person affiliated with Binance or Zhao; (iii) provide an accounting, not destroy or otherwise alter or conceal relevant documents and information, and engage in expedited discovery; and (iv) show cause why certain relief should not continue.”

Apparently, the SEC is struggling to serve Zhao, who reportedly lives in the UAE, and is asking the court to be able to serve Zhao via “alternative means.”

The SEC also seeks the Court’s permission to serve Defendants Binance and Zhao via alternative means.


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