SEC Seeks Asset Freeze and Repatriation in Binance Case: The Securities and Exchange Commission (SEC) urgently seeks to halt Binance’s U.S. platform, freezing assets and repatriating customer funds. Alleging fraud and improper conduct, the SEC’s filing targets Binance’s founder and entities involved, aiming to safeguard assets and prevent evidence tampering.
In an urgent move, the Securities and Exchange Commission (SEC) has filed an emergency motion with a federal court in Washington, D.C. to freeze the assets of Binance’s U.S. platform. The motion also seeks to repatriate both fiat currency and cryptocurrency held by customers of the service. It’s important to note that this freezing order specifically applies to Binance’s two U.S. holding companies and not the international exchange that operates outside U.S. regulations. The SEC aims to include dozens of accounts held at various institutions such as Axos Bank, Silvergate Bank (which is no longer in operation), and Prime Trust, among others, under this order.
According to the SEC, two foreign entities controlled by Binance’s founder, Changpeng Zhao, namely Sigma Chain and Merit Peak, were allegedly used as channels to commingle customer funds with Binance’s own funds, amounting to billions of dollars. The SEC has filed a lawsuit against Binance and Zhao, citing thirteen separate counts including fraud against investors, improper mixing of funds, and operating as an unregistered broker, dealer, and clearinghouse.
The emergency restraining order was deemed necessary by the Securities and Exchange Commission (SEC) to prevent the dissipation of assets that could be used to satisfy any potential judgments, considering the defendants’ consistent violation of U.S. laws over the years.
Additionally, the order requires Changpeng Zhao to provide justification as to why a preliminary injunction should not be issued against him and his two holding companies. Furthermore, all three entities are prohibited from tampering with or destroying evidence related to the case.
