The Binance-SEC case seems to be moving 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. It even seems to want to go further by removing all access from Binance and its CEO Changpeng Zhao to US client funds.
Towards an imminent asset freeze, the cryptosphere in turmoil
On June 5, the SEC files a lawsuit against Binance. One day after this legal action, the American regulator asks a restraining order aimed at freezing the assets of BAM Trading. This is the American branch of the exchange. According to information, this restraining order would also concern other entities linked to one of the most important crypto exchanges. The goal: to avoid any dissipation and transfer of funds to another jurisdiction. This approach by the SEC would also make it possible to preserve the status quo.
In his file, the SEC explains the main purpose of the restraining order request: to remove Binance and its CEO from any authorization or involvement in the transfer or removal of US client assets. The SEC is also asking Binance US to transfer all crypto assets to a different wallet, with new private and administration keys. These measures are intended to ensure the protection of client funds. But not only ! This will also prevent any interference from Binance or its related entities.
Binance and CZ reassure users
Following the complaint filed by the US regulator, Binance US reacted on Twitter. According to his team, the filing of the preliminary injunction is unjustified. The American branch of Binance also claims to be disappointed with the situation. However, it emphasizes its willingness to cooperate with the authorities to resolve this legal dispute.
Binance’s CEO also reacted on Twitter. “The SEC actions only affect Binance US and do not affect the parent company. User funds are safe »he explained, thus trying to reassure the crypto community.
Freezing brand assets a big turning point in the Binance VS SEC case. The outcome of this legal debacle will also (inevitably!) affect the future of crypto exchanges in the United States.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
