The SEC Is Trying to Freeze Binance’s Assets

The Securities and Exchange Commission is trying to freeze the assets of Binance, the world’s largest cryptocurrency exchange. In an emergency motion for a temporary restraining order filed tuesday (PDF), the SEC says it made this decision to “ensure the protection of client assets.”

The filing also claims that Binance has engaged in “infringing conduct” over the years in “disregard of United States laws, evasion of regulatory oversight, and open questions regarding the custody and control of various financial transfers and customer assets.” are engaged.

As part of the order, Binance and CEO Changpeng “CZ” Zhao are required to relinquish “possession, custody, or control over customer assets” within five days, with neither Zhao nor the company agreeing to transfer the assets or ability to withdraw. purse. It also asks that Binance transfer customer assets to “new wallets with new private keys, including new administrative keys” and provide the SEC with records of all new wallets with customer assets.

In proposed order, Ordinary Clients may continue to transfer their assets to “any Binance Entities except and specifically the Customer Crypto Assets and subject to the prohibition otherwise that it does not transfer Customer Assets for the benefit of any Binance Entities.”

Zhao responded to the offer retweet a post Saying, “We’re about to find out just how solvent #Binance is.”

“Pending the outcome of this dispute, the SEC is being extremely aggressive in trying to freeze Binance’s assets,” says Moish Peltz of the law firm Falcon, Rappaport & Berkman. “If the court approves this motion, it may have implications for the parties’ conduct under the court’s order.”