The U.S. Securities and Exchange Commission (SEC) has moved to halt all crypto activities associated with the Binance exchange. The regulatory body is seeking a temporary restraining order that would effectively freeze all Binance-related assets.
In a request made to the D.C. District Court, the SEC seeks approval to freeze assets connected to BAM Management US Holdings and BAM Trading Services – the entities responsible for the operations of Binance.US. This comes on the heels of an official SEC lawsuit against Binance filed earlier this week.
According to the SEC’s document:
“The SEC urgently requests this relief to protect customer assets and to prevent the dispersal of available assets that might satisfy any judgment. The request is due to the Defendants’ long history of alleged violations, avoidance of U.S. law, evasion of regulatory oversight, and questions surrounding financial transfers and control of Customer Assets – as outlined in the Complaint, Memorandum of Law, and supporting materials.”
If the court approves this order, Binance must ensure that only Binance.US controls customer funds within the next five days. Subsequently, within a month, all customer assets would have to be moved to new wallets, exclusively accessible by Binance.US.
Binance and its CEO Changpeng Zhao have not yet made any comments regarding the SEC’s most recent attempt to freeze all crypto assets on the platform.
