Binance.US has filed its defense ahead of the June 13 hearing on the freezing of its funds.
Binance.US has asked the court to deny the securities regulator’s proposed temporary restraining order against its assets, on the grounds that the move would “effectively kill off” its business.
In a presentation June 12, Binance.US criticized the Securities and Exchange Commission’s emergency motion for a temporary restraining order on its business, calling it “draconian and unduly burdensome.”
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A hearing on the temporary restraining order is scheduled for June 13 in the US District Court for the District of Columbia.
SEC/Binance Newsflash: Binance Fights Back
Binance, CZ and the BAM Defendants just filed lengthy opposition pleading to the SEC’s emergency action. Find the links to two important pleadings below, which will give you a good idea of their defenses.
Should be an extraordinary… pic.twitter.com/qc5GRwHmjn
—John Reed Stark (@JohnReedStark) June 12, 2023
SEC/Binance News: Binance Strikes Back
Binance, CZ, and the BAM defendants have just filed lengthy arguments opposing the SEC’s emergency action. Find the links to two important allegations below, which will give you a good idea of their defenses. It should be an extraordinary…
Binance.US argued that the restraining order would force the closure of BAM Trading Services Inc, the entity that provides cryptocurrency trading and exchange services for Binance.USstating:
“The requested relief would primarily harm BAM’s customers, would effectively put BAM out of business, and would prevent BAM from defending itself in this litigation.”
In particular, Binance.US criticized the regulator’s approach to taking legal action against it, stating that “all SEC claims fail” because the regulator has yet to “identify a single security trade on the BAM platform.” At the time of publishing this article, the SEC had alleged that at least 68 cryptocurrencies are securities.
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“The SEC suggests that it is a foregone conclusion that cryptocurrency is a security, but that is not the case. The fact that numerous crypto exchanges, including BAM, have operated in the United States for years without SEC interference belies the claim that they are clearly covered by securities laws,” the filing states.
Besides, Binance.US said that it had made “significant efforts” to cooperate with an ongoing SEC investigation that began on December 20, 2020. According to the filing, the results of this research have yielded more than 700,000 individual communications and “bespoke data” about its day-to-day operations.
Today we charged Binance Holdings Ltd. (Binance); US-based affiliate, BAM Trading Services Inc., which, together with Binance, operates https://t.co/swcxioZKVP; and their founder, Changpeng Zhao, with a variety of securities law violations. pic.twitter.com/IWTb7Et86H
— US Securities and Exchange Commission (@SECGov) June 5, 2023
Today we have charged Binance Holdings Ltd. (Binance) (Binance); the US-based subsidiary, BAM Trading Services Inc, which, along with Binance, operates and its founder, Changpeng Zhao, of a variety of securities law violations.
The SEC first launched a major legal action against Binance and its affiliates on June 5, accusing the crypto exchange of failing to register as a stock exchange and allowing US clients to trade cryptocurrencies that it claims are securities.
Besides, the regulator accused Binance CEO Changpeng Zhao (CZ) from being able to access funds from Binance.US clients and alleged that he moved $12 billion in funds from Binance through a privately controlled entity called Merit Peak.
- SEC allegations against Binance and Coinbase are terrible for DeFi
The next day, on June 6, the SEC filed an emergency motion for a temporary restraining order against Binance, requesting that assets held on Binance.US be frozen. until the crypto exchange could prove that the funds could not be moved by CZ or any other Binance executive.
While both Binance and Binance.US have repeatedly denied the SEC’s claims on social media over the course of the last week, a joint memorandum filed together with the presentation marked the first official comment made regarding the allegations.
It states that the SEC is unable to “identify a single instance in which BAM’s client assets were mismanaged or misused.”
In fact, there is no “emergency” at all, other than one fabricated by the SEC for its own purposes,” the memo added.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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- Binance CEO CZ Responds to Data Suggesting There Has Been an Outflow of Billions on the Exchange
- SEC allegations against Binance and Coinbase are terrible for DeFi
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