The SEC has asked a US federal court to completely freeze BinanceUS assets, to prevent “dissipation of assets available on the exchange for any judgment.” Binance.US will be tasked with returning cryptocurrencies and fiat currencies to customers if they are granted.
The SEC aims to freeze BinanceUS assets
Barely 48 hours after filing legal action against Binance and its founder, Changpeng Zhao (CZ), the US Securities and Exchange Commission (SEC) is set to take more drastic action against the group.
According to sources close to the latest developments, the agency has asked a Washington D.C. federal court to freeze all of Binance’s assets in the US and return all customer funds (cryptocurrency and funds). The dreaded regulator claims the move is to “prevent squandering the assets available to any judgment, given the defendants’ years of abusive behavior, and disregard the laws of the United States.”
Notably, sources say the latter order only applies to two US cryptocurrency subsidiaries of Binance, which allegedly holds dozens of accounts at various financial institutions, including Silvergate Bank, Prime Trust, Axos Bank, and more.
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In addition, the restraining order is intended to prevent the exchange, CZ, and its holding companies from destroying potential evidence. CZ was also forced to explain why a preliminary injunction was not filed against him and his US holding companies.