Binance.US Reassures Users: Funds Secure Amidst SEC’s Asset Freeze Attempt

Crypto Exchange Binance.US Ensures Safety of User Funds Amid SEC Actions

Crypto exchange Binance.US has made efforts to reassure its users in response to a motion from the United States Securities and Exchange Commission (SEC) seeking to freeze its assets on an expedited basis.

In a tweet on June 6, Binance.US reiterated the safety and security of user assets, assuring that the platform remains fully operational with normal deposit and withdrawal functions.

Earlier on the same day, the SEC filed an emergency motion in the District of Columbia U.S. District Court, requesting a temporary restraining order against Binance, Binance.US, and Binance CEO Changpeng Zhao (CZ). The SEC motion included eight actions:

  • Freezing the assets of Binance.US
  • Repatriating fiat and cryptocurrency held by U.S. customers or for their benefit
  • Prohibiting the defendants from destroying, altering, or concealing records
  • Imposing conditions on discovery

Concerns arose within the crypto community about a potential “bank run” on the exchange due to the restraining order. However, it is important to note that the SEC’s emergency motion is not expected to directly impact customers’ ability to withdraw funds, as it still requires approval from a district judge.

Binance.US Responds to the SEC’s Actions

Binance.US declared the injunction to be unwarranted and accused the SEC of filing it as a tactical move to gain an advantage in litigation, despite ongoing dialogue between the exchange and the SEC over the past week. Binance.US stated:

“The filing of the preliminary injunction is unwarranted and based more on the SEC Staff obtaining an advantage in litigation versus genuine concern about the safety of customer assets. Despite the information the company has provided to ensure SEC Staff of the safety of customer assets, the Staff has nonetheless decided to file the motion seeking a temporary restraining order and preliminary injunction. While we are disappointed by this action, we look forward to defending ourselves in court.”

Cointelegraph reached out to Binance.US for further comment but did not receive an immediate response.

SEC Lawsuit Against Coinbase

Coinbase, another prominent cryptocurrency exchange, was sued by the SEC on the same day for allegedly offering unregistered securities. The SEC lawsuit claims that Coinbase has been operating as an unregistered security broker since 2019, evading the disclosure scheme for securities markets. This lawsuit shares similarities with the one filed against Binance on June 5.