Binance. US says user funds remain ‘safe’ amid SEC attempt to freeze assets

Cryptocurrency exchange Binance.US has responded to a new proposal from the United States securities regulator that seeks to “swiftly” freeze the assets of the American crypto exchange.

In a Twitter post on June 6, Binance.US reiterated that “user assets remain safe and secure” and that “deposits and withdrawals are operating normally and are fully operational.”

On June 6, the SEC filed an emergency motion in the US District Court for the District of Columbia for a temporary restraining order requesting eight actions against Binance, Binance.US and Binance CEO Changpeng Zhao (CZ).

This afternoon, the SEC filed a motion against a TRO and preliminary injunction attempt to freeze, among other things corporate property. User assets remain safe and secure and the platform is fully…

– Binance.US (@BinanceUS) June 6, 2023

The requested actions include the freezing of assets on Binance.US and the repatriation of fiat and cryptocurrencies held by or for the benefit of US customers. In addition, the proposal prohibits defendants from destroying, altering or concealing records and imposes another set of conditions on discovery.

Related: SEC Files Motion for Restraining Order Against Binance

Binance.US said the injunction was “unjustified” and claimed it was part of a ploy to profit in the litigation, despite having been in talks with the SEC last week, stating:

“The filing of the preliminary injunction is unfair and based more on SEC staff seeking an advantage in litigation versus a genuine concern about protecting client assets.”

Binance.US stated, “Despite the information the company has provided to SEC staff to ensure the safety of clients’ assets, the staff has decided to file a motion seeking a temporary restraining order and preliminary injunction, Binance.US said:

“While we are disappointed by this action, we look forward to defending ourselves in court.”

Cointelegraph reached out to Binance.US for further comment but did not receive an immediate response.

This is a developing story, and further information will be added as it becomes available.