Cryptocurrency exchange Binance.US has attempted to quell potential unrest from its users following a proposal from a US securities regulator seeking to freeze its assets on an “expedited basis”.
In a tweet dated June 6, Binance.US reiterated that “user assets remain safe and secure” and added that the platform “remains fully operational with deposits and withdrawals as normal.”
Earlier on June 6, the Securities and Exchange Commission (SEC) filed an emergency motion in the US District Court for the District of Columbia seeking a temporary restraining order against Binance, Binance.US and Binance CEO Changpeng Zhao (CZ), requesting eight actions.
This afternoon, the Securities and Exchange Commission (SEC) filed a motion for and a preliminary injunction against a TRO. https://t.co/AZwoBOgsqS You try, among other things, to freeze https://t.co/AZwoBOgsqS The company’s assets. User assets remain safe and secure and the platform continues to be fully…
– Binance.US (BinanceUS) June 6, 2023
The required actions include freezing Binance.US assets and returning fiat and cryptocurrencies held by US clients or for US clients. In addition, the motion prohibits defendants from destroying, altering, or concealing records and imposes other sets of conditions on discovery.
Some in the crypto community subscriber Fears that the restrictive order could lead to a “bank run” on the exchange.
The SEC’s emergency motion is not expected to directly affect customers’ ability to opt out, and will still require the approval of a county judge moving forward.
Binance.US said the injunction was “unjustified,” claiming it was filed as part of a ploy to gain an advantage in litigation after the exchange spent the past week in dialogue with the Securities and Exchange Commission. Binance.US stated:
“The filing of the preliminary injunction is unjustified and relies more on SEC employees gaining an advantage in litigation versus genuine concern about the safety of customers’ assets.”
“Despite information provided by the company to ensure the safety of client assets in the SEC to the SEC employees, the employees nonetheless decided to file an application for a temporary restraining order and preliminary injunction,” Binance.US said, adding:
“While we are disappointed by this action, we look forward to defending ourselves in court.”
Cointelegraph reached out to Binance.US for further comment but did not receive an immediate response.
Related: SEC Files Motion for Restraining Order Against Binance
The order comes on the same day that the Securities and Exchange Commission sued Coinbase for allegedly offering unregistered securities.
The SEC lawsuit alleges that Coinbase never registered as a broker, national securities exchange, or clearing agency, evading the Securities Markets Disclosure Scheme, and operating as an unregistered security broker since 2019. The lawsuit is similar to that filed against Binance on June 5. .