SEC Files Emergency Action Application to Freeze Binance.US Assets

The US branch of the world’s largest cryptocurrency exchange, Binance.US, has just been bombarded by the SEC. As part of the regulator’s recent crackdown on the crypto exchange, the regulator filed an emergency action application against Binance.US to freeze its assets.

Securing client funds on Binance

According to court filings, the request was made with the intention of ensuring that the assets of Binance.US customers are safe and kept in the United States. At least pending the outcome of ongoing litigation by the SEC.

The filing also seeks to activate other emergency relief against Binance Holdings Ltd., the globally operating arm of the exchange, and its founder, Changpeng Zhao. This comes after news broke on Monday, June 5, that the SEC filed 13 charges against Binance.US and its billionaire founder, Changpeng Zhao, saying the company broke US regulations by offering securities in the form of cryptocurrencies.

According to the allegations, the exchange had “no oversight or controls to ensure that the assets were properly protected.”

What does this mean for the industry?

Basically, the SEC is arguing Binance.US is illegally facilitating securities trading. As the largest exchange in the world, it has left many investors feeling a bit confused and confused as to what this means. However, Binance is not the only target of the SEC. The commission also went after Coinbase, alleging that popular cryptocurrencies offered by the exchange qualify as securities.

A large portion of the crypto community seems to be united in this case, as many investors see it as an attack on the entire crypto industry. Of course, Binance.US and Coinbase deny all allegations, with Coinbase CEO Brian Armstrong tweeting that “the SEC has taken a regulation from an enforcement perspective that is hurting the US.”

BNB price continues to trend low as SEC goes after Binance | Source: BNBUSD on TradingView.com

stay safe

Binance appears to be quiet on the matter, as the exchange responds Free It said in a statement that “we intend to vigorously defend our platform,” although it will “continue to cooperate with regulators and policy makers in the US and around the world.”

Changpeng Zhao also took to Twitter to announce that if the order is granted, it will only affect funds under Binance.US and not the global Binance.com.

things seem level trust in crypto platforms remains strong. however, tweet alert Whale Alert on Twitter reveals that crypto whales have moved $60 million worth of MATIC from Binance.US to an unknown wallet after news broke about the SEC’s proposal to freeze the exchange’s assets.

Featured image from Chart from TradingView.com