Binance US Says User Assets Safe, Operation Continues in Response to SEC TRO

Binance US Says User Assets Safe, Operation Continues in Response to SEC TRO

The US Securities and Exchange Commission (SEC) filed a motion seeking a Temporary Restraining Order and preliminary injunction against Binance US attempting to, amongst other things, freeze Binance US corporate assets. In response, Binance US stated that user assets remain safe and secure and the platform continues to be fully operational with deposits and withdrawals functioning as normal.

At the same time, Binance US stated that "the filing of the preliminary injunction is unwarranted and based more on the SEC Staff obtaining an advantage in litigation versus genuine concern about the safety of customer assets. Until recently the SEC Staff has not expressed a concern about the safety of customer assets."

And through near around-the-clock dialogue over the past week, the counsel of Binance US addressed SEC Staff's concerns regarding the safety of customer assets. Despite the information the company has provided to ensure SEC Staff of the safety of customer assets, the Staff has nonetheless decided to file the motion seeking a temporary restraining order and preliminary injunction. Binance US says it is disappointed by this action and will defend itself in court.

The day after the SEC indicted Binance, the SEC reportedly sought a temporary restraining order from the court to freeze assets tied to BAM Management US Holdings and BAM Trading Services, the holding and operating firms for Binance US. If the order is granted, Binance will have five days to ensure that only Binance US has access to customer funds and 30 days to transfer all customer assets to a new wallet that only Binance US can access. 

In response to the SEC's action, Binance CEO Changpeng Zhao said, "If the court grants the temporary restraining order, this will only affect Binance US, will not affect Binance, and funds are SAFU."

 

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