The US Securities and Exchange Commission (SEC) filed an emergency motion to freeze its assets platformof Binance in the US and repatriate funds held by its customers, including fiat currencies as well as cryptocurrencies. The CNBC he says:
The binding order only applies to the two Companies Binance's US portfolio and not for the international non-US regulated exchange. THE order if issued it 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 billionmillions customer dollars that were improperly combined 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 its founder companys, Changpeng Zhao, accusing the exchange of mismanaging client funds as well as lying to regulators and investors about its operations.
