Court approves the SEC’s request to freeze assets of Binance.US

The exchange is obliged to return all fiat currencies and crypto assets, which are on its account, to customers within 10 days

07.06.2023 - 09:50

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1 min

What’s new? The court granted the US Securities and Exchange Commission’s (SEC) request for a restraining order against the US arm of crypto exchange Binance. The court ordered the assets of BAM Management and BAM Trading, subsidiaries of Binance.US, to be frozen. In addition, the exchange is required to return all fiat currencies and crypto assets, which are on its account to customers within 10 days, Prime reports, citing documents from the District of Columbia Court.

Prime’s material

What else is known about the situation? The SEC said the order freezing the assets of BAM Management and BAM Trading is necessary to preserve the status quo, prevent the embezzlement or transfer of those funds from the court’s jurisdiction, and protect the court’s ability to provide relief through damages, interest, and civil penalties.

In its motion, the SEC also required the defendants to provide arguments against enforcement of the injunction and certain information about intra-corporate transactions.

The Commission filed a lawsuit for violation of securities regulation laws against Binance, Binance.US, as well as the founder of the companies’ Changpeng Zhao on June 5. After that, the outflow of funds from Binance amounted to $719 million.

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