The Binance.US cryptocurrency exchange has tried to calm the possible discomfort of its users after a motion by the United States securities regulator that seeks to freeze its assets “in an accelerated manner.”
In a June 6 tweet, Binance.US reiterated that “user assets remain safe and secure” and added that the platform “remains fully operational with deposits and withdrawals running as normal.”
Earlier today, June 6, the SEC filed an emergency motion in the US District Court of Columbia seeking a temporary restraining order against Binance, Binance.US and Binance CEO Changpeng. Zhao (CZ), requesting eight shares.
This afternoon, the SEC filed a motion seeking a TRO and preliminary injunction against attempting to, among other things, freeze corporate assets. User assets remain safe and secure and the platform continues to be fully…
—Binance.US (@BinanceUS) June 6, 2023
The requested measures include the freezing of Binance.US assets and the repatriation of fiat and cryptocurrencies held by US clients or for the benefit of US clients. In addition, the motion prohibits the defendants from destroying, altering, or concealing records and imposes other conditions on discovery.
Some members of the cryptocurrency community fear that the restraining order causes a “bank run” on Binance.
The SEC’s emergency motion is not expected to directly affect clients’ ability to withdraw their funds, and will still require the approval of a district judge to proceed.
Binance.US said the injunction was “unwarranted,” claiming it was filed as part of a ploy to gain litigation advantage after the exchange spent last week in dialogue with the SEC. Binance.US stated:
“The filing of the injunctive relief is unwarranted and is based more on SEC staff obtaining an advantage in litigation than genuine concern for the security of clients’ assets.”
“Despite the information the company has provided to assure SEC staff of the safety of client assets, the staff has decided to file the motion requesting a temporary restraining order and injunctive relief,” Binance.US said. , adding:
“Although we are disappointed by this action, we look forward to defending ourselves in court.”
Cointelegraph reached out to Binance.US for further comment but did not immediately receive a response.
The order comes on the same day that Coinbase has been sued by the SEC for allegedly offering unregistered securities.
The SEC’s complaint alleges that Coinbase has never registered as a broker, national stock exchange, or clearing agency, evading the disclosure scheme for securities exchanges, and has been operating as an unregistered securities broker since 2019. lawsuit bears similarities to the one filed against Binance on June 5.
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