The SEC has asked a United States federal court to freeze the entire assets of BinanceUS, to prevent the “dissipation of the exchange’s available assets for any judgment.” Binance.US will be mandated to repatriate customers’ crypto and fiat currencies if granted.
SEC aiming to freeze BinanceUS assets
Barely 48 hours after taking legal action against Binance and its founder, Changpeng Zhao (CZ), the United States Securities and Exchange Commission (SEC) is set to take more drastic actions against the outfit.
According to sources close to the latest development, the agency has asked a Washington D.C. federal court to freeze the entire assets of Binance.US and repatriate all customers’ funds (crypto and fiat). The dreaded regulator claims the move is to “prevent the dissipation of available assets for any judgment, given the defendants’ years of violative conduct, disregard of the laws of the United States.”
Notably, sources say the latest order only applies to Binance’s two US holding companies, who allegedly held dozens of accounts at various financial institutions, including the now-defunct Silvergate Bank, Prime Trust, Axos Bank, and more.
Additionally, the restraining order aims to prevent the exchange, CZ, and his holding companies from destroying possible evidence. CZ has also been compelled to explain why a preliminary injunction against him and his U.S. holding companies should not be filed.