The U.S. Securities and Exchange Commission (SEC) has requested a restraining order against Binance.US, asking the court to freeze the assets of Binance.US’s parent companies, which are operating under the name BAM. The SEC is also seeking to have Binance.US funds returned to customers. The regulator has asked Binance, Binance.US-related companies, and Binance CEO Changpeng Zhao to show why a preliminary injunction should not be entered. This implies that the regulator wants restrictions imposed before the trial.
SEC wants information and records preserved
Additionally, the SEC aims to compel the defendants to provide specific information and prevent them from destroying, concealing, or altering records. The securities regulator claims that these actions are necessary to ensure customer safety. It also stated that the defendants violated and disregarded U.S. laws for years. Furthermore, the SEC noted that many questions remain open about intercompany transactions and that some defendants claim they are not under the court’s jurisdiction.
Zhao attempts to reassure the public
Binance CEO Changpeng Zhao has attempted to reassure the public by stating that the order would only affect Binance.US and not Binance.com if the request is granted. However, the SEC’s motion specifically asks the court to freeze the assets of Binance.US’s parent companies, which will ultimately impact the operations of Binance.com.
SEC claims urgency to ensure customer safety
The SEC has mentioned that the requested actions are needed promptly to ensure customer safety. The regulator has accused Binance.US and related parties of violating U.S. laws and disregarding them for years. The SEC’s motion aims to have the defendants compelled to provide specific information and prevent them from destroying, concealing, or altering records. The regulator’s ultimate goal is to ensure that customer funds are returned and protected.