SEC emergency order to freeze Binance funds

The U.S. Securities and Exchange Commission (SEC) has filed an emergency motion to freeze the assets of the Binance platform in the U.S. and repatriate funds held by its customers, including fiat currencies as well as cryptocurrencies. The CNBC he says:


The freeze order only applies to Binance's two US holding companies and not to the international exchange that is not regulated by the US. The order if granted would apply to dozens of accounts held at Axos Bank, the defunct Silvergate Bank, Prime Trust and other institutions.

Two foreign entities also controlled by Binance founder Zhao, Sigma Chain and Merit Peak, served as conduits for billions of customer dollars that were improperly commingled with Binance funds, the SEC says.

The emergency restraining order is necessary, the regulator argues, to "prevent the dispersion of available assets for any judgment, given the defendants' criminal conduct, for violations of the laws of the United States."

The order also compels Binance founder Changpeng Zhao to “show cause why a preliminary injunction should not be entered” against Zhao and his two holding companies. The restraining order will prevent all three entities from destroying any evidence.

On Monday, the SEC filed a lawsuit against Binance and the company's founder, Changpeng Zhao, accusing the exchange of poor client funds as well as lying to regulators and investors about their activities. The Best Technology Site in Greecefgns

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Written by giorgos

George still wonders what he's doing here ...

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