Binance.​US says user funds ‘remain safe’ amid SEC attempt to freeze assets

Crypto exchange Binance.US has actually attempted to stop possible unrest from its users following a motion from the United States securities regulator seeking to freeze its possessions “on an expedited basis.” In a June 6 tweet, Binance.US repeated that “user possessions remain safe and safe” and included the platform “continues to be totally functional with withdrawals and deposits functioning as typical.” Earlier on June 6, the SEC filed an emergency situation motion in the District of Columbia U.S. District Court requesting for a short-term limiting order versus Binance, Binance.US and Binance CEO Changpeng Zhao (CZ), requesting eight actions. This afternoon, the SEC filed a motion seeking a TRO and initial injunction against https://t.co/AZwoBOgsqS attempting to, among other things, freeze https://t.co/AZwoBOgsqS business possessions. User possessions stay safe and secure and safe and the platform continues to be fully …– Binance.US (@BinanceUS) June 6, 2023

The asked for actions include the freezing of the properties of Binance.US and the repatriation of fiat and cryptocurrency held by U.S. consumers or for the benefit of U.S. clients. In addition, the movement forbids the accuseds from damaging, altering or concealing records and enforces other sets of conditions on discovery.Some in the crypto community shared concerns that the limiting order could spark a “bank run” on the exchange. The emergency situation motion from the SEC is not expected to directly affect the customers capability to withdraw, and will still require a district judges sign-off to go ahead.Excerpt from the short-term restraining order by the SEC. Source: CourtListenerBinance.US stated the injunction was “unwarranted,” claiming it was submitted as part of a tactic to acquire a benefit in litigation after the exchange spent the previous week in dialogue with the SEC. Binance.US stated:” The filing of the preliminary injunction is unwarranted and based more on the SEC Staff acquiring an advantage in lawsuits versus real issue about the security of customer assets.”” Despite the info the company has actually supplied to make sure SEC Staff of the security of consumer possessions, the Staff has nevertheless chosen to file the motion seeking a short-term limiting order and initial injunction,” Binance.US said, including:” While we are disappointed by this action, we anticipate safeguarding ourselves in court.” Cointelegraph called tBinance.US for additional comment however did not receive an instant action. Related: SEC files movement for restraining order versus BinanceThe order comes the very same day Coinbase was taken legal action against by the SEC for supposedly providing unregistered securities.The SEC lawsuit declares that Coinbase has actually never signed up as a broker, nationwide securities exchange or cleaning company, averting the disclosure scheme for securities markets, and has been operating as an unregistered security broker because 2019. The match bears resemblances to the one brought against Binance on June 5..

Other Questions People Ask

What measures is Binance.​US taking to ensure user funds remain safe amid the SEC's actions?

Binance.US has publicly assured its users that their funds are safe and secure, despite the SEC's motion to freeze assets. In a tweet, the exchange emphasized that it remains fully operational, with withdrawals and deposits functioning normally. The company is committed to protecting user assets and plans to defend itself in court against the SEC's claims.

How does the SEC's motion to freeze assets affect Binance.​US users?

The SEC's emergency motion seeks to freeze Binance.US's assets but is not expected to directly impact users' ability to withdraw funds. Binance.US has reassured customers that their assets remain secure and that the platform continues to operate as usual. Users can still conduct transactions without interruption while the legal proceedings unfold.

What is Binance.​US's response to the SEC's request for a temporary restraining order?

Binance.US has labeled the SEC's request for a temporary restraining order as "unwarranted," arguing that it is part of a strategy to gain an advantage in litigation. The exchange claims it has provided sufficient information to the SEC regarding the safety of customer assets. Despite their disappointment with the SEC's actions, Binance.US is prepared to defend itself in court.

What concerns have been raised by the crypto community regarding the SEC's actions against Binance.​US?

Some members of the crypto community have expressed fears that the SEC's motion could lead to a "bank run" on Binance.US, as users may rush to withdraw their funds. However, Binance.US has reassured its customers that their assets are safe and that operations will continue as normal. The situation remains fluid, and users are encouraged to stay informed about any developments.

What similarities exist between the SEC's lawsuits against Binance.​US and Coinbase?

The SEC's lawsuit against Binance.US shares similarities with its recent action against Coinbase, both targeting alleged violations related to unregistered securities. Coinbase is accused of operating as an unregistered broker since 2019, paralleling concerns raised about Binance.US. These legal challenges highlight ongoing regulatory scrutiny within the cryptocurrency industry.