Binance Asks Court to Deny SEC’s Restraining Order: ‚It Would Kill Our Business‘
• Binance has asked the court to deny the SEC’s restraining order to freeze its assets as it would put the firm out of business.
• The SEC called for a temporary restraining order to freeze funds until Binance.US can demonstrate that no company member, including CZ, have access to them.
• Binance proposed transferring all assets to BAM with only employees in control of the assets.
Binance Asks Court To Deny SEC’s Restraining Order
Binance has asked the court to deny the U.S. Securities and Exchange Commission (SEC)’s restraining order since it would effectively end the company’s business. The SEC called for a temporary restraining order to freeze funds until Binance.US can demonstrate that no company member, including owner Changpeng Zhao “CZ,” have access to them. The company claims that freezing their assets would put customers at risk and instead suggested transferring all of their assets into possession, custody and control with only employees in control of the assets.
SEC Allegations Against BAM Management US Holdings
On June 5th, 2020, the SEC charged Binance, Binance.US and Zhao for allegedly violating securities laws in the U.S., claiming that they operated as an unregistered exchange broker and clearinghouse allowing U.S consumers trade tokens without registration or approval from authorities . Furthermore, they allege that Binance and CZ could access customer funds moving millions to CZ-owned enterprises such as Merit Peak and Sigma Chain which were not registered with any regulating body either .
Binace Denies Allegations
Binance had already dismissed these allegations claiming that freezing their assets would put customers at risk instead suggesting a proposal where they transfer all of their assets into possession, custody and control by only employees being able to access those funds with CZ out of reach . This is despite allegations identifying only token ‘BNB’ on their platform which was considered an investment contract however; they failed to demonstrate this claim according to filing by Binance attorneys .
Suggested Proposal By Binace
Binace proposed transferring all funds into new wallets under possession ,custody and control by only Binance US employees having access over those funds which eliminates any involvement or connection between CZ & customer funds keeping them safe from misuse or theft while providing them peace of mind knowing that there are no irregularities taking place within trading activities while following regulations set forth by governing bodies .