Binance, its US affiliates, and CEO Changpeng Zhao have criticized a recent allegation by the US Securities and Exchange Commission (SEC) that they have commuted or transferred assets owned by customers of Binance.US, a local affiliate platform in the country. parties on wednesday (today) foot A motion in District Court in Columbia, asking the court to order the SEC to “comply with all applicable codes of conduct regarding extrajudicial statements.”
On July 17, the Securities and Exchange Commission published A statement saying it has been granted ’emergency relief’ to protect the assets of Binance.US clients. In the statement, the securities noted that Binance, Zhao, and the operators of Binance.US, BAM Management US Holdings and BAM Trading Services, have agreed to return assets held to the United States for the benefit of clients of the country’s domestic unit.
“Since Changpeng Zhao and Binance control the assets of the platform’s customers and have been able to mix customer assets or transfer customer assets as they wish, as we have claimed, these prohibitions are necessary to protect the assets of investors,” said Gurbir S. Grewal, director of enforcement at the SEC. Finance and stock exchanges, in the statement.
However, Binance, its US subsidiaries, and Zhao argued in the new motion to dispute Grewal’s claim, noting that the SEC had previously admitted in court that it had “no evidence that BAM’s clients’ assets were squandered, commingled, or misused in any way.” Shapes”. They called the SEC’s press release “disappointing,” and further claimed that the action posed potential harm to US clients and “risked tarnishing the jury.”
Lmao @ Binance vs SEC # Fire generals
Court: “I want to know, do BAM’s assets go overseas? Does it happen or not? It’s amazing to me that I’ve now asked that question to every SEC attorney 5 times.”
SEC: “Currently, no assets will be transferred offshore…we are not… pic.twitter.com/QkEY5HM2ji
Tree_of_Alpha June 21, 2023
Court approves restricted access to clients’ assets
On June 5, the SEC filed 13 charges against Binance, its affiliates, and Zhao, alleging that it operated illegal trading platforms, offered unregistered securities with crypto assets, and mixed customer funds. finance polesIt reported that the Securities and Exchange Commission two days later filed for a temporary restraining order to freeze the assets of the subsidiaries.
However, the SEC and Binance engaged in talks to avoid a full asset freeze and eventually obtained court approval to avoid an asset freeze, which limited access to the funds to Binance employees only.
Although we maintain that the SEC’s request for emergency relief was not entirely justified, we are pleased that the dispute over that request was resolved on mutually acceptable terms.
User funds have been and will always be safe and secure on all Binance affiliates…
– Czechoslovakia 🔶 Binance (cz_binance) June 17, 2023
Moreover, the US subsidiary under the agreement guarantees that none of the officials from Binance Holdings, the global exchange, will have access to the private keys of the wallets or hardware wallets. Binance.US was also required to create and transfer US customer funds to new crypto wallets that he could only access through.
Binance, its US affiliates, and CEO Changpeng Zhao have criticized a recent allegation by the US Securities and Exchange Commission (SEC) that they have commuted or transferred assets owned by customers of Binance.US, a local affiliate platform in the country. parties on wednesday (today) foot A motion in District Court in Columbia, asking the court to order the SEC to “comply with all applicable codes of conduct regarding extrajudicial statements.”
On July 17, the Securities and Exchange Commission published A statement saying it has been granted ’emergency relief’ to protect the assets of Binance.US clients. In the statement, the securities noted that Binance, Zhao, and the operators of Binance.US, BAM Management US Holdings and BAM Trading Services, have agreed to return assets held to the United States for the benefit of clients of the country’s domestic unit.
“Since Changpeng Zhao and Binance control the assets of the platform’s customers and have been able to mix customer assets or transfer customer assets as they wish, as we have claimed, these prohibitions are necessary to protect the assets of investors,” said Gurbir S. Grewal, director of enforcement at the SEC. Finance and stock exchanges, in the statement.
However, Binance, its US subsidiaries, and Zhao argued in the new motion to dispute Grewal’s claim, noting that the SEC had previously admitted in court that it had “no evidence that BAM’s clients’ assets were squandered, commingled, or misused in any way.” Shapes”. They called the SEC’s press release “disappointing,” and further claimed that the action posed potential harm to US clients and “risked tarnishing the jury.”
Lmao @ Binance vs SEC # Fire generals
Court: “I want to know, do BAM’s assets go overseas? Does it happen or not? It’s amazing to me that I’ve now asked that question to every SEC attorney 5 times.”
SEC: “Currently, no assets will be transferred offshore…we are not… pic.twitter.com/QkEY5HM2ji
Tree_of_Alpha June 21, 2023
Court approves restricted access to clients’ assets
On June 5, the SEC filed 13 charges against Binance, its affiliates, and Zhao, alleging that they operated illegal trading platforms, offered unregistered securities for crypto assets, and mishandled customer funds. finance polesIt reported that the Securities and Exchange Commission two days later filed for a temporary restraining order to freeze the assets of the subsidiaries.
However, the SEC and Binance engaged in talks to avoid a full asset freeze and eventually obtained court approval to avoid an asset freeze, which limited access to the funds to Binance employees only.
Although we maintain that the SEC’s request for emergency relief was not entirely justified, we are pleased that the dispute over that request was resolved on mutually acceptable terms.
User funds have been and will always be safe and secure on all Binance affiliates…
– Czechoslovakia 🔶 Binance (cz_binance) June 17, 2023
Moreover, the US subsidiary under the agreement guarantees that none of the officials from Binance Holdings, the global exchange, will have access to the private keys of the wallets or hardware wallets. Binance.US was also required to create and transfer US customer funds to new crypto wallets that he could only access through.