SEC demands asset freeze on Binance

Thu 08 Jun 2023 ▪ 3 min of reading ▪ by Ariela R.
Centralized Exchange (CEX)

The Binance-SEC case seems to be progressing very quickly. Just one day after filing a complaint against the crypto exchange, the regulator is taking a new step. The SEC is currently seeking to freeze Binance’s assets and even wants to go further by blocking any access of Binance and its CEO Changpeng Zhao to the funds of U.S. clients.

New SEC action against Binance
SEC demands asset freeze, announces Binance. (Source: Twitter)

Towards an imminent asset freeze, the cryptosphere in turmoil 

On June 5th, the SEC filed a complaint against Binance. Just one day after this legal action, the U.S. regulator requested a restraining order to freeze the assets of BAM Trading, the American branch of the exchange. According to reports, this restraining order would also affect other entities related to one of the largest crypto exchanges. The goal is to prevent any dissipation or transfer of funds to another jurisdiction. This move by the SEC would also help maintain the status quo.

In its filing, the SEC explains the main objective of the request for a restraining order: to remove any authorization or involvement of Binance and its CEO in the transfer or withdrawal of assets of U.S. clients. The SEC also asks Binance US to transfer all crypto assets to a different wallet with new private and administrative keys. These measures aim to ensure the protection of client funds. But that’s not all! It will also prevent any interference from Binance or its related entities.

Binance and CZ reassure users 

Following the complaint filed by the U.S. regulator, Binance US responded on Twitter. According to their team, the filing of the preliminary injunction is unwarranted. The American branch of Binance also expressed disappointment with the situation. However, they emphasized their willingness to cooperate with authorities to resolve this legal dispute.

The CEO of Binance also responded on Twitter. “The actions of the SEC only pertain to Binance US and do not affect the parent company. User funds are safe,” he explained, attempting to reassure the crypto community.

The asset freeze marks a major turning point in the Binance vs. SEC case. The outcome of this legal debacle will inevitably affect the future of crypto exchanges in the United States.

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Ariela R. avatar
Ariela R.

Je m'appelle Ariela et j'ai 31 ans. J'oeuvre dans le domaine de la rédaction web depuis maintenant 7 ans. Je n'ai découvert le trading et la cryptomonnaie que depuis quelques années. Mais c'est un univers qui m'intéresse beaucoup. Et les sujets traités au sein de la plateforme me permettent d'en apprendre davantage. Chanteuse à mes heures perdues, je cultive aussi une grande passion pour la musique et la lecture (et les animaux !)


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.