Binance, its US affiliates and CEO
Changpeng Zhao have slammed a recent claim made by the US Securities and
Exchange Commission (SEC) that they commingled or diverted assets belonging to
customers of Binance.US, a local affiliated platform in the country. The parties on Wednesday (today) filed a motion before the district court in Columbia, asking that
the court order the SEC “to comply with all applicable rules of conduct concerning
extrajudicial statements.”
Explore limitless, instant crypto swaps. Choose from 1000+ coins and tokens and exchange with no registration or sign-up. Experience a platform that prioritizes your data privacy and fund security.
On July 17, the SEC published a statement saying it had secured ‘an
emergency relief’ to protect Binance.US customers’ assets. In
the statement, the securities watchdog noted that Binance, Zhao
and operators of Binance.US, BAM Management US Holdings and BAM Trading Services, have agreed
to repatriate to the United States assets held for the benefit of customers of the local unit in the country.
“Given that Changpeng
Zhao and Binance have control of the platforms’ customers’ assets and have been
able to commingle customer assets or divert customer assets as they please, as
we have alleged, these prohibitions are essential to protecting investor
assets,” Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, said
in the statement.
However, Binance, the
US affiliates and Zhao in the new motion opposed Grewal’s claim, noting that the SEC had previously admitted
before court that it “has no evidence that BAM customer assets have been
dissipated, commingled, or misused in any way.” They described the
SEC’s press statement as ‘disappointing’,
and further contended that the action poses potential harm to
US
customers and ‘risks tainting the jury pool’.
Keep Reading
Lmao @ Binance v. SEC #FireGensler
Court: “I want to know, are BAM assets going offshore? Is it happening or is it not? It’s stunning to me that I’ve now asked this question to each of the SEC attorneys 5 times.”
SEC: “So currently the assets are not going offshore… We’re not… pic.twitter.com/QkEY5HM2ji
— Tree of Alpha (@Tree_of_Alpha) June 21, 2023
Restricted Access to Customers’ Assets
On June 5, SEC filed 13 charges against
Binance, the affiliated
entities and Zhao, alleging that they operated illegal trading platforms,
offered unregistered crypto asset securities and commingled customers’ funds. Two days later, the SEC filed a motion to obtain a temporary restraining order to freeze the assets
of the affiliates, Finance Magnates reported.
However, SEC and
Binance later sought to avoid a total freeze of the assets and ultimately secured a court approval to sidestep a complete account restriction by making the funds only accessible to Binance.US employees.
Although we maintain that the SEC’s request for emergency relief was entirely unwarranted, we are pleased that the disagreement over this request was resolved on mutually acceptable terms.
User funds have been and always will be safe and secure on all Binance-affiliated…
— CZ 🔶 Binance (@cz_binance) June 17, 2023
Furthermore, the US affiliates under the agreement are to ensure that none of the officials from Binance Holdings, the global exchange, have access to private keys for the customers’ crypto wallets. Binance.US was also required to create and move US customers’ fund to wallets only it has access to.
Binance, its US affiliates and CEO
Changpeng Zhao have slammed a recent claim made by the US Securities and
Exchange Commission (SEC) that they commingled or diverted assets belonging to
customers of Binance.US, a local affiliated platform in the country. The parties on Wednesday (today) filed a motion before the district court in Columbia, asking that
the court order the SEC “to comply with all applicable rules of conduct concerning
extrajudicial statements.”
On July 17, the SEC published a statement saying it had secured ‘an
emergency relief’ to protect Binance.US customers’ assets. In
the statement, the securities watchdog noted that Binance, Zhao
and operators of Binance.US, BAM Management US Holdings and BAM Trading Services, have agreed
to repatriate to the United States assets held for the benefit of customers of the local unit in the country.
Explore limitless, instant crypto swaps. Choose from 1000+ coins and tokens and exchange with no registration or sign-up. Experience a platform that prioritizes your data privacy and fund security.
“Given that Changpeng
Zhao and Binance have control of the platforms’ customers’ assets and have been
able to commingle customer assets or divert customer assets as they please, as
we have alleged, these prohibitions are essential to protecting investor
assets,” Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, said
in the statement.
However, Binance, the
US affiliates and Zhao in the new motion opposed Grewal’s claim, noting that the SEC had previously admitted
before court that it “has no evidence that BAM customer assets have been
dissipated, commingled, or misused in any way.” They described the
SEC’s press statement as ‘disappointing’,
and further contended that the action poses potential harm to
US
customers and ‘risks tainting the jury pool’.
Keep Reading
Lmao @ Binance v. SEC #FireGensler
Court: “I want to know, are BAM assets going offshore? Is it happening or is it not? It’s stunning to me that I’ve now asked this question to each of the SEC attorneys 5 times.”
SEC: “So currently the assets are not going offshore… We’re not… pic.twitter.com/QkEY5HM2ji
— Tree of Alpha (@Tree_of_Alpha) June 21, 2023
Restricted Access to Customers’ Assets
On June 5, SEC filed 13 charges against
Binance, the affiliated
entities and Zhao, alleging that they operated illegal trading platforms,
offered unregistered crypto asset securities and commingled customers’ funds. Two days later, the SEC filed a motion to obtain a temporary restraining order to freeze the assets
of the affiliates, Finance Magnates reported.
However, SEC and
Binance later sought to avoid a total freeze of the assets and ultimately secured a court approval to sidestep a complete account restriction by making the funds only accessible to Binance.US employees.
Although we maintain that the SEC’s request for emergency relief was entirely unwarranted, we are pleased that the disagreement over this request was resolved on mutually acceptable terms.
User funds have been and always will be safe and secure on all Binance-affiliated…
— CZ 🔶 Binance (@cz_binance) June 17, 2023
Furthermore, the US affiliates under the agreement are to ensure that none of the officials from Binance Holdings, the global exchange, have access to private keys for the customers’ crypto wallets. Binance.US was also required to create and move US customers’ fund to wallets only it has access to.