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..
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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 actively engaging with the SEC to address concerns and has stated that the injunction filed by the SEC is unwarranted.
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 their funds. Binance.US has reassured its customers that their assets remain secure and that the platform continues to operate as usual. The motion requires judicial approval before any actions can be taken, which provides some level of protection for users in the interim.
What are the implications of the SEC's actions against Binance.US for the broader crypto community?
The SEC's attempt to freeze assets at Binance.US has raised concerns within the crypto community about potential bank runs on exchanges. Users may feel anxious about the security of their funds, prompting them to withdraw assets quickly. However, Binance.US has reiterated that user funds are safe, and the situation is still developing as they prepare to defend themselves in court.
What is Binance.US's response to the SEC's request for a temporary restraining order?
Binance.US has characterized the SEC's request for a temporary restraining order as unwarranted and part of a strategy to gain an advantage in litigation. The exchange claims it has been transparent with the SEC regarding the security of user assets, yet the regulator chose to proceed with the motion. Binance.US is committed to defending its position in court and maintaining user confidence during this challenging time.
What actions can Binance.US users take in light of the SEC's motion?
Users of Binance.US should stay informed about the developments regarding the SEC's motion and follow updates from the exchange. While Binance.US has assured that user funds are safe, users may consider reviewing their account balances and withdrawal options if they feel uncertain. Engaging with customer support for any specific concerns can also provide clarity during this period of uncertainty.