June 20, 2024

Binance.US denies request to freeze funds

Binance.US has filed a motion with the court to dismiss the SEC’s proposed injunction against its assets, claiming that such an action would effectively halt its operations. In a June 12 filing, Binance.US slammed the SEC’s emergency request for an injunction, calling it “extremely harsh and onerous.”

The hearing in the injunction is scheduled for June 13 in the US District Court for the District of Columbia. Binance.US argued that issuing the injunction would make BAM Trading Services Inc. , the company responsible for providing cryptocurrency trading and exchange services to Binance.US, is out of a job. Submission said:

“The relief requested would primarily harm BAM’s clients, effectively putting BAM out of business and precluding BAM from defending itself in this litigation.”

Significantly, Binance.US has questioned the entire SEC’s approach to pursuing legal action against the exchange, claiming that “all claims made by the SEC fail” because the regulator has yet to “identify a single security transaction on the BAM platform.” At the time of the filing, the SEC claimed that at least 68 cryptocurrencies were securities.

The filing emphasized that despite the SEC’s suggestion, it is not a given that cryptocurrencies are securities. Binance.US noted that several cryptocurrency exchanges, including BAM, have operated in the US for years without any involvement from the SEC, upsetting claims that they are clearly subject to securities laws.

In addition, Binance.US stated that it has made significant efforts to cooperate with an ongoing SEC investigation that was launched on December 20, 2020. According to the filing, the investigation resulted in the production of more than 700,000 individual connections and comprehensive data per day. Today’s operation.

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The Securities and Exchange Commission (SEC) launched a major lawsuit against Binance and its affiliates on June 5, accusing the cryptocurrency exchange of failing to register as a stock exchange and to allow US customers to trade cryptocurrencies that the SEC considers to be securities. The regulator also claimed that Binance CEO Changpeng Zhao (CZ) had access to Binance. US customers’ money and $12 billion transferred through a privately owned company called Merit Peak.

The next day, on June 6, the Securities and Exchange Commission (SEC) filed an emergency motion for an injunction aimed at freezing assets held on Binance. The US can prove that CZ or another Binance manager did not have the funds.

While both Binance and Binance.US have consistently denied the SEC allegations on social media over the past few weeks, the joint memorandum filed with the filing was the first official comment on the allegations. The memo argued that the SEC could provide no evidence of mishandling or misuse of BAM’s client assets and claimed that there was no real emergency other than one created by the SEC for its emergency purposes.

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