In a stern critique of Binance, Binance.US and CEO Changpeng Zhao (CZ), the United States Securities and Exchange Commission (SEC) filed an urgent petition with the US District Court for the District of Columbia on Dec. June 6, requires some urgent action.
According to the petition, the SEC requests to freeze the assets of Binance.US and recover fiat and cryptocurrencies held by US customers or for the benefit of US customers. In addition, the SEC requested that defendants be barred from destroying, altering, or concealing any records and imposing other regulatory conditions.
According to the filing, this relief was deemed necessary to protect the client’s assets and prevent the dissolution of assets prior to any judgment, because the defendants had repeated the actions. violate U.S. laws, flout regulations, evade regulatory oversight, and raise suspicions about various financial transactions, as well as custody and control issues. customer’s product.
The petition is attached to a proposed order, ready to be signed by the judge.
Under the proposed order, US customer assets would be required to be transferred to Binance.US within 10 days, and defendants would be required to transfer all customer crypto assets to a new wallet with a new private key, which will be owned by officers and employees of BAM Trading in the United States. However, client assets can still be redeemed, although transactions over $100,000 will require special handling.
Under the order, defendants will also be required to provide a list of customers’ crypto and fiat assets as well as a list of Binance.US customers, along with their balances.
The move follows the SEC’s lawsuit against Binance a day earlier. Multiple allegations against Binance had surfaced in the press a few days earlier and were dismissed by the exchange as a “conspiracy theory.”