Earlier today, the SEC revealed that it has received court approval for “emergency relief” from Binance and affiliated entities to require funds impacting US investors to be maintained in the US. The order states that funds must be repatriated and held for the benefit of investors. The SEC claims it took this action to ensure the funds are safe while alleging that Binance has comingled user funds.
Changpeng Zhao, or CZ, the founder and CEO of Binance, has responded to the SEC action on Twitter.
CZ states that they are “pleased that the disagreement over this request was resolved on mutually acceptable terms.
He added, “User funds have been and always will be safe and secure on all Binance-affiliated platforms.”
Although we maintain that the SEC's request for emergency relief was entirely unwarranted, we are pleased that the disagreement over this request was resolved on mutually acceptable terms.
User funds have been and always will be safe and secure on all Binance-affiliated…
— CZ 🔶 Binance (@cz_binance) June 17, 2023
Binance is the target of an SEC enforcement action that claims it operates unregistered securities exchanges.
In recent months, the regulatory drums have been pounding louder for the world’s largest crypt exchange, and Binance has retrenched in certain markets. Most recently, Binance announced it was going to stop providing services in the Netherlands while focusing on receiving approval under MiCA – the EU legislation that provides a regulatory structure for digital assets.