‘All SEC claims fail’ – Binance.US denies offer to freeze funds

Binance.US has asked the court to reject the securities regulator’s proposed temporary restraining order against its assets ahead of a June 13 hearing, claiming the move would “effectively end” its business.

in june 12 AdmissionBinance.US slammed the SEC’s emergency proposal for a temporary restraining order on its business, calling it “draconian and unnecessarily burdensome.”

A hearing on the temporary restraining order is scheduled for June 13 in the US District Court for the District of Columbia.

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Defendants Binance, CZ, and BAM filed lengthy opposition arguments calling for the SEC’s emergency action. Find links to two important arguments below, which will give you a good idea of ​​their defense.

Must be an extraordinary… pic.twitter.com/qc5GRwHmjn

— John Reed Stark (@John Reed Stark) June 12, 2023

Binance.US argued that the restraining order would effectively put BAM Trading Services Inc., an entity that provides crypto trading and exchange services for Binance.US, out of business, stating:

“The requested relief will primarily harm BAM’s customers, effectively put BAM out of business, and prevent BAM from defending itself in this lawsuit.”

Specifically, Binance.US took aim at the regulator’s entire approach of taking legal action against it, claiming that “all of the SEC’s claims have failed” as the regulator has yet to record “a single security trade on BAM’s platform”. has not been identified.” At the time of publication, the SEC has alleged at least 68 cryptocurrencies as securities.

“The SEC suggests it has already concluded that cryptocurrency is a security, but it is not. Several cryptocurrency exchanges, including BAM, have operated in the United States for years without SEC interference, falsely claiming that they are clearly covered by the securities laws,” the filing wrote.

Furthermore, Binance.US said it had made “significant efforts” to cooperate with the SEC investigation that began on December 20, 2020. According to the filing, the results of this investigation yielded more than 700,000 individual communications and “bespoke” communications. Data” on his day to day operations.

Today we have Binance Holdings Ltd. (Binance) charged; US-based affiliate, BAM Trading Services Inc., which operates in conjunction with Binance 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

The SEC first launched major legal action against Binance and its affiliates on June 5, alleging the crypto exchange failed to register as a securities exchange and failed to allow US customers to trade cryptocurrencies. It is claimed that these are securities.

In addition, regulatory accused Binance CEO Changpeng Zhao (CZ) to be able to access Binance.US customer funds, and that he invested $12 billion in Binance’s funds through a privately-controlled entity called Merit Peak.

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 proved that Granted that the funds were not able to be transferred by CZ or any other. Other Executives at Binance.

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While both Binance and Binance.US have repeatedly denied the SEC’s claims on social media over the past week, a joint memorandum The submission with the filing marked the first official comment made regarding the allegations.

It argued that the SEC “has been unable to identify an instance in which BAM client assets were misappropriated or misused.”

“In fact, there is no ’emergency’ here, other than one created by the SEC for its own purposes,” the memo said.

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