Following Bitcoin‘s price surge beyond $27,000, news from the SEC has once again stirred sellers. With a recent petition, the SEC is calling for a freeze of assets, which could intensify pressure on Binance. As previously, Binance insists that Binance US and customer assets are in no way intertwined with the parent companies.
Crypto Last Minute
The SEC is seeking a temporary restraining order to freeze Binance‘s U.S. assets. Following the news, Bitcoin‘s price dipped below $27,000. It was already indicated in the lawsuit filed on Monday that this could be requested. Now, an official request has been made to freeze Binance’s U.S. assets. This request encompasses the three companies mentioned in the lawsuit. If such a step is taken, it could obstruct Binance’s operations in the U.S. Worse still, it could cause Binance to lose billions of dollars.
What we particularly underline in the SEC’s lawsuit file is the demand for the return of all profits and tax losses. A hefty bill could be served for Binance exchange, which reaches enormous volumes annually. In a liquidity-dry environment, it seems implausible for the exchange to afford such a sizable penalty, causing investor worry.
Order to Freeze Binance Assets
The application filed in the DC District Court requested approval to freeze the assets of Binance US‘s holding and operating companies, BAM Management US Holdings and BAM Trading Services. The request details are as follows;
The SEC respectfully submits that this expedited assistance is necessary considering the Defendants’ years-long infringing behaviors, disregard for U.S. laws, evasion from regulatory oversight, and open questions regarding various financial transfers and the preservation and control of Customer Assets, to ensure the security of customer assets and to prevent the dispersal of available assets for any judgment.
If the order is issued, Binance will have five days to ensure that only Binance US can access customer funds, and within 30 days, all customer assets will be transferred to new wallets that only Binance US can access.
Binance stated in an announcement that user funds in Binance US have never been at risk.
